When the car breaks down or we turn on the air conditioning, we pay for it- literally. Many of us do not realize that we are short on funds until we are faced with a bill. Friends and family are often not in a position to help us financially so we turn to a short-term lending source.
If we do not have a checking account, payday loans tied to our savings account may be the answer.
This financing is typically linked to a checking account. The amount of the approved loan is based on the monthly salary of the applicant. Funds are directly deposited into the checking account. This account is also used to provide loan repayment on the due date.
But, what if a person does not have a checking account?
A savings account payday loan performs the same way but is instead linked to the savings account. It is considered a cash advance because the funds are advanced to the borrower until his or her next paycheck. Lenders typically provide between £50 and £1,000 depending on monthly income of the borrower.
The money is directed deposited into the savings account and money owed is withdrawn from this account when due.
While loans bank provided may require that the financing be secured, this is not the case with a savings account payday loan. In addition, these are no credit check loans so people can qualify even if their credit score is very bad. In the case of an emergency, this financing can be the best solution.
Despite the availability, this financing should be a last resort. Repeated borrowing can be very expensive due to the loans APR, which can be about 1000 percent. Online lenders offer different rates so consumers should comparison shop.
The cheapest loans tied to a savings account will be the best emergency option.