Have you ever needed some extra money for the weekend? Many people can get through a week’s worth of expenses and still find themselves short on cash for bills. But when the banks are closed until Monday, what can you do? This is when many folks opt for weekend payday loans. But any payday loan you’re considering may come with extremely high interest rates and unfavorable terms. So be careful.
In this article, we’ll take a look at these loans and whether or not they’re worth the financial risk.
What Are Weekend Payday Loans?
Weekend payday loans are short-term unsecured loans that are designed to fix a short-term lack of available funds. It would help if you didn’t even consider one unless you know you can repay it on time.
Weekend payday loans work like traditional payday loans, with a couple of differences:
- Instant loan approval. Weekend payday loans are approved even faster than a standard payday loan. And they can be approved 24/7 through an online weekend payday lender.
- They have short loan terms. Borrowers will need to make full repayment in anywhere from two to four weeks in most cases.
Unexpected emergencies can throw off an entire budget. And many people are already strapped for time and can’t wait for a traditional loan. This is when many decide to use payday loans.
Unlike other types of traditional secured loans, weekend payday loans online are particularly easy to obtain. Additionally, weekend payday loans are just as accessible as any other loan for people with bad credit. But what they may offer with speed and convenience won’t make up for the risks.
Risks of Weekend Payday Loans
No matter what kind of payday loan you’re considering, it will likely come with a high cost. Payday loans, in general, tend to offer extremely high interest rates and unfavorable loan terms. High rates and short repayment periods can make them difficult to pay back on time, or at all. This leads to something called “rollover.”
Rollover is when the lender offers to extend your loan term. And while this may sound like a good thing, they also attach more fees and interest to the new loan. This can make the new loan even more difficult to repay than the initial one. This is how many payday loan borrowers end up in a cycle of debt.
Rollover, high rates, and short repayment periods make payday loans a very risky financial move.
How Do Weekend Payday Loan Work?
A payday loan borrower will go through much of the same process as any other loan applicant. After choosing a lender, the borrower will fill out an online application, providing the necessary information.
After you complete the application, a decision on the loan will usually be made immediately. The lender will then email documents that detail the loan’s total cost and terms for repayment. It’s imperative that you read these terms and conditions thoroughly. Once the borrower electronically signs the papers, the loan amount is sent via direct deposit. From application to loan disbursement, the whole process can sometimes be completed within the day!
Loan Qualifications
While requirements can vary from lender to lender, almost all loans will require you to meet the following criteria:
- Be at least 18 years of age
- Provide a form government-issued ID
- Have an active bank account (either checking or savings)
- Have a valid phone number and email address
Weekend Loans With Bad Credit?
Most people broadly understand that bad credit is a significant factor in determining what types of loans are available to a potential borrower. A credit score is an assessment of a person’s overall creditworthiness. It’s a tool that lenders and creditors use to decide whether or not to give a loan to a person. Calculated after a review of a consumer’s payment history and overall usage of their available lines of credit, a credit score is a three-digit number that ranges from 300–850. A credit score of 600 or below is considered a bad credit score.
Good credit scores indicate an excellent history of managing payments, which means that people with good credit have access to loans with better interest rates. On the other hand, bad credit signals a higher risk to a lender. So, a borrower with bad credit is a riskier customer and is charged a higher interest rate.
Unlike loans offered at a bank, payday loans don’t require evaluations of credit scores or lots of other financial information. As they were created for customers who may not be eligible for financing options, payday loans are made available to people who can pay them back, regardless of their credit history.
Other Options for Weekend Loans
Even for their convenience and ease of approval, you may decide that a weekend payday loan isn’t the right choice for you. Here are a couple of other avenues that you may want to explore that may be able to provide cash for the weekend:
Credit Cards Advances
If you have a credit card with an available balance, getting cash may be as easy as visiting your nearest ATM. Many credit card companies offer cash advance loans to their customers that can be withdrawn the same way you take money out of your checking or savings account. First, however, it’s essential to understand your card’s fees for cash advances; typically, this service is offered for additional fees and is subject to a much higher interest rate than a regular credit card purchase.
Pawn Shop Loans
A Pawn shop loan is another way to get cash quickly. A valuable item can be given to a pawn shop as collateral in exchange for a loan worth up to 60% of the item’s value depending on the shop. So a person can walk into a pawn shop with their valuables and walk out with cash, which makes it just as fast as a payday loan—if not faster. However, know that your collateral will be lost to the pawnshop if you don’t manage the loan well and repay it on time.
Although they come with a lot of risks, these alternative options allow a borrower to take a little more time with repayment. Consider them if you need more time than a couple of weeks to repay a loan.
Is a Weekend Payday Loan Right for You?
The convenience of a payday loan is the main benefit, but the risks outweigh the convenience. You may be able to get money quickly, but you could be setting yourself up for a financial headache down the road.
A weekend payday loan is an expense that has to be paid as soon as possible. So be sure to shop around for a loan that works best for you and know precisely how much you’re going to have to repay so that you can plan to include it in your budget. Any payday loan can turn into a problem for many months to come if it isn’t correctly managed.
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