First let’s discuss the advantages of a payday loan for 3000 dollars. These advantages are first that the allow bad credit borrowers access to capital. Again, many times this is the only way to get a 3000 loan bad credit as banks and credit unions usually target good credit borrowers. All you need to do in order to qualify for such a loan is 1) be of legal age, 2) have a valid checking account, and 3) have a current job where you make $1,000 or more (some lenders will have different amount restrictions, but $1,000 is generally the average amount of income required). You will fill out the application, submit a few (2-4) paystubs to verify your income, and then the lender will process the loan. They may also call your employer to verify everything is legit, and once verified you will be qualified for the loan.
One thing that most people don’t realize is that while these loans do not require a credit check the company will do a check to make sure that 1) you are not currently going through a bankruptcy, and 2) you do not have a current payday loan in default. No, there are no credit checks required, you can have bad credit, and you can have had bankruptcies in the past – but you can’t get the 3000 dollar loan if you are currently in the bankruptcy process.
Another thing that most people don’t pay as much attention to is the costs associated with immediate cash loans. On average, the cost for a 3000 loan for 2 weeks would be around $500, or 17% of the loan amount. If you averaged that cost out for the entire year the APR would be above 450%, so you obviously do not want to extend such loans longer than the original one or two week loan period.
