Ever thought about taking out a short term payday loan but unsure whether it is a safe and viable loan option for you? Here is all what you need to know. Payday loans give you the push you need to take your next step, but if mismanaged, they can lend you in even further debt. PayMe India has collated 6 common question about payday loans to help you make the right decision –
- Are payday loans a current asset? – The payday loans or short term liabilities refer to any financial obligation which is due within a 12 month period or under the current fiscal year. They are mostly paid within one year, therefore they are classified as current liabilities. A longer term bank loan – still ongoing after one year – would be considered as a non-current liability.
- What happens if you get a payday loan and don’t pay it back? – If you fail to make regular repayments for your short term loan, the lender can take legal action in order to recover what you owe. The late payment will be exhibited in your credit report and the lender may choose to take you to court and garnish your wages. This is a significant factor and needs to be considered before you opt for a short term loan, as this scenario will make it harder for you to obtain credit in future.
- Can people with bad credit get a payday loan? – As these loans are small and the repayments are structured around the next payday, the criteria is a bit more flexible. However, the lenders will still differ in the lending criteria. Most of the payday loans lenders will be more concerned will be concerned with your capacity to pay back the loan rather than the credit history. Hence, they tend to focus more on the income and the financial activity over the past few months.
- How to find a reputable payday loan lender? – Most of the payday loan companies operate online, so one can use their website to judge the reputability. When looking at their site, you can see how transparent they are with information regarding the fees and payment . You can also read through the third party customer reviews of their services. PayMe India offers online payday loans in India offering low rates and high reliability.
- How to compare payday loans? – You need to first decide what your needs are as a borrower and why you are borrowing the money. You can compare the loans by their rates and fees, as well as their flexibility with repayments. You can also check how quickly the lender is able to have money to you, and whether this meets your borrowing needs.
- Can payday loans affect the credit score? – Any financial lending service has the potential to harm the credit score if it is not managed properly. Faithfully repaying a loan can help one to restore the credit rating, but you have have the likeliness to negatively impact the score if you miss payments.
If you have any other questions, feel free to ask and discuss your queries with PayMe India!