Living in the big apple is expensive so it’s hardly surprising that so many residents of Brooklyn, Queens, Manhattan and Staten Island turn to an express payday loan to help make it through to month end. When finances are a little tight, a New York payday loan can help to bridge the gap between income and expenditure. The money can be borrowed for any purpose, including paying the rent, fixing the car or paying a utility bill. Just pay back the money and any interest that has accrued when paid at the end of the month.
Lending Criteria for a New York Payday Loan
Loans until payday are suitable for New Yorkers with bad credit or no credit at all. Credit scoring is not a part of the application process. This means that those who have been rejected by the banks are now guaranteed approval, provided they meet the following eligibility criteria:
- Must be a U.S. resident.
- Over-18 years of age.
- In full-time employment.
- Provide two forms of identification.
- A valid checking account.
Given that it is an unsecured guaranteed cash advance loan, the above checks are only concerned with proving the applicant’s identity and ensuring affordability.
Applying for an Express Payday Loan in New York City
Subject to the above criteria being met, it is possible to borrow up to $1,500 in 24-hours. Once an immediate cash loan application has been approved, the customer will be expected to provide the bad credit lender with a postdated check for the principal and any interest that will accrue over the course of the month. If the application is submitted prior to 2.30 PM, a same day cash loan will be received in just hours. Regardless of when the customer applies, the money will be received the next working day at the latest.
Cost of Loans Until Payday in Brooklyn, Queens, Manhattan and Staten Island
It normally costs up to $25 to borrow $100 for a single calendar month. This means that an express payday loan for $700 will accrue about $175 of interest in just 30 days. Critics often argue that the rate of interest is usury, but New York payday loans are offered to customers who have already been rejected by other lenders due to a history of bad credit. The default rate amongst borrowers is high and the borrowing term of a same day cash loan is relatively short. There is little time to spread the cost of any administrative expenses.
Dangers of a New York Payday Loan
Unless a customer has just experienced a bad month, an immediate cash loan could make money problems a lot worse. Borrowing money with bad credit isn’t cheap and will leave less money to pay the bills the month after. It is easy to see how borrowers get trapped into a cycle of dependency. If financial difficulties are ongoing, it is advisable to get some free money advice from a debt charity. There are a range of debt free plans that are specifically designed to reduce outgoings and help to balance the books. This may be a better option than yet another fast cash advance loan.