Payday loans seem to have a ton of speculations that come with it. Sometimes, people with bad credit wonder if they can get approved for a payday loan, while sometimes youngsters wonder if they can get a chance to get approved for one.
Most youngsters may be doubtful about being able to receive one due to the rules that apply to payday loans about the age, and also because youngsters usually don’t have credit histories to rely on when it comes to applying for a loan.
Most people in the United States start working at 18. The above statements can be quite relatable.
Why Does an 18-Year-Old in the U.S. Need a Payday Loan?
When one starts working, s(he) may or may not have financial support from his/ her family, since not all families may be secure enough to contribute to the independent lives of their younger ones.
Of course, an 18-year-old may be old and educated enough to get a decent job. But, they will need some extra funds to live the independent life they dream of at the beginning of their career.
That’s exactly when payday loan lenders can be of great help.
Can 18-Year-Olds Get Payday Loans?
Yes, indeed they can. The policy and rules followed by payday loan lenders and laid down by the government is that any individual who is above the age of 18 is eligible to apply for a payday loan. If you are at least 18 years old, you can apply for a payday loan under the same eligibility terms as everyone else. As long as you’re 18 years or above and meet the requirements of a payday loan lender, the lender will not turn down your application because of your age. The simple eligibility terms of payday loan lenders allow almost everyone to get funded, and very easily.
What are the advantages and disadvantages for getting a loan at 18 years?
Getting a loan at 18 can have advantages and drawbacks. It’s important to carefully evaluate the pros and cons before deciding to borrow.
Advantages:
- Quick Access to Funds: Upon approval, lenders can disburse the loan funds to your checking account as early as the next day, facilitating prompt addressing of immediate financial needs.
- Credit History Building: Acquiring a loan at 18 aids in establishing and building your credit history. Making timely payments contributes to your credit score. This enhances eligibility for future loans and access to better interest rates.
Disadvantages:
- Limited Loan Amounts: Due to limited or nonexistent credit history at the age of 18, you may only qualify for a small loan, falling short of meeting your current financial requirements.
- Potentially High Interest Rates: The absence or scarcity of credit history may impact your eligibility for loans with favorable terms and low interest rates, leading to higher interest costs.
- Risks of Unnecessary Debt: Difficulty in repaying the loan could result in accumulating unnecessary debt. It is crucial to budget for repayments and only apply for loans that align with your financial capacity.
Obtaining a loan at 18 can provide quick financial relief and aid in credit history building. However, it’s essential to be mindful of the limitations. It’s also important to consider potential high costs and the risk of accumulating unnecessary debt. Thorough consideration and responsible financial planning are imperative. They ensure a positive borrowing experience.
Can 18 Year Olds Get Payday Loans with No Credit History?
Payday loans have received a lot of attention because they don’t rely on a borrower’s credit rating. Payday loan lenders offer loans that come with no credit check since not only does this give more surety of being approved to the borrower, but it also doesn’t waste much time when it comes to approving a loan.
Instead, the majority of payday loan lenders depend on a person’s income statement to fund them. As long as it is stable, lenders are likely to provide the funds you need.
Amounts and Rates
These are short-term loans that you must repay on your next consecutive pay date. Most payday loan lenders do not offer more than a few thousand dollars. However, in most cases, if your next immediate pay date is less than a week away, you shall be liable to repay your lender on the pay date after that.
When it comes to the rates of interest of a payday loan, what you should know is that they are higher in comparison to traditional loans. But that’s because the amounts that these lenders offer are so low in comparison to other kinds of loans. If they do not charge a decent rate of interest, they will hardly earn a few pennies.
If repaying your loan in a lump sum seems challenging, you can apply with a lender who offers online installment loans instead. Installment loans from direct lenders online are loans that are quite like payday loans, while barring the fact that one is required to repay them in lump-sum. As the name suggests, installment loans are required to be repaid in parts over time, such as 3-6 months. This makes it easy on the pocket when it comes time to repay.
When you choose to apply for an online loan, it is always ideal to do your homework, consider your options and choose the one that suits you the most, so to avoid pushing you into a debt trap of any kind or also making it difficult for you to manage your other expenses.