If used wisely, a payday loan can be very helpful after a person has filed for bankruptcy. When you don't have enough money between paychecks, you might want to look into getting a payday loan. Even if a person has filed for bankruptcy, they can still get a payday loan and use the money however they need to for their financial well-being.
What's the meaning of that?
This means you can use a payday loan after bankruptcy to pay for an emergency car repair or medical bills for yourself or a family member. You can use the money from a payday loan to pay a recurring bill, like your mortgage, so that you don't have to pay a late fee or some other kind of fine.
If you're wondering how it's possible to use payday loans when many other traditional ways to get extra cash aren't, the answer is simple. When you get a payday loan, your credit history is not checked. A person's credit history has nothing to do with how they apply for a payday loan.
But you need to meet other requirements besides having a good credit history if you want to get a payday loan. You need to have had a job for at least three months that pays you regularly and puts your money directly into a bank or thrift institution checking account. You will have to give information about where you work and how much money you have in the bank. You must be 18 years old or older. That's it, though. Most companies that offer payday loans will let you borrow between $100 and $1,500, and sometimes even more, depending on how much you make each month at your job.
As was already said, you can still use payday loans after bankruptcy. After you get your payday loan, which will be directly deposited into your checking account the next business day after the loan is approved, all you have to do is make sure you have enough money in your account to pay back the loan amount plus the fee on the agreed-upon date, which is your next payday. On that date, the money will be taken out of your account by itself. State laws and the rules of payday loan companies usually let a borrower pay fees to extend their loan for one or two more paydays, but not more. These cash advances through direct deposit are meant to help with short-term money problems.
You did hear it
Payday loans can be applied for completely online from any computer with an Internet connection. The process of getting approval is not long. Most approvals happen in less than 30 minutes, though. You don't have to fax paperwork or wait for an underwriting department to decide. The approval process is nothing like what you would go through when buying a house or car, or when applying for a personal loan from a credit union. In fact, the word "payday loan" means that your next paycheck is used as collateral.
