Savings Account Payday Loans

When every little bit of cash is taken with bills, utilities and everyday necessities, it is very difficult to save funds or have contingencies available for a sudden unexpected bill. In fact, it can be quite difficult finding extra cash to address the problem. Many people have poor credit history. In fact, it seems a black mark is put against your credit history if you miss even one payment or are even late with a payment. Banks have changed from giving away money to being very stringent with its funds so it is no surprise that loans being given out by banks are very much reduced. So what can we do in a situation where a quick injection of cash is needed to pay for a vital expense? Savings account payday loans are a big help in cases such as this.

What exactly is a savings account payday loan?
Savings account payday loans are different to the loan you would apply to the bank for. They are only meant as a short term answer to an emergency funding problem. The savings account payday loan relies on an individual to have a bank account into which money can be transferred after a payday loan application has been successful, which very often is the case.

There are two ways in which the process works. The first type of savings account payday loan relies on an individual already having some savings in their account. Although there may be some savings, there may not be enough to cover all that is needed for the emergency. Therefore, this criterion will be checked first before a payday loan is processed and agreed. The second type of savings account payday loan does not depend on this criterion and once the loan has been agreed, the funds will be placed into the savings account.

Can just about anyone get a savings account payday loan?
Although not everyone can get this kind of loan, a higher percentage of people are being granted money by this method than by the typical bank loans. In fact, it is fast becoming a popular way for many to address emergencies as the cost of living expenses continues to rise, but the paycheck remains the same.

There are many companies that are offering loans of this kind and it has to be said that the interest payments are higher than bank loans. However, the criteria for lending are lower, so more people can get access to the money when they need it. You will need to prove you are who you say you and live where you say you live and show evidence of this including proof of employment and a paycheck. Applications forms can be completed online in a matter of minutes and approval is quite quick, usually within the same day. Some companies have a quicker turnover time than others and the money can be with you in many instances the same day. Clearly, for a savings account payday loan you will need to have a savings account otherwise you will not qualify for this kind of a loan. Before agreeing to a loan, ensure that you get the possible deal as the interest rates do change quite a lot from lender to lender.

Some banks are realizing the potential of payday loans and are starting to lend small amounts to those with savings accounts. This can work out a little cheaper than some online companies, as banks will have lower rates. However, a disadvantage to this is that a lending institution can access the savings account for the funds if your payment for their loan is delayed for any reason or not made. There can be many innocent reasons for a payment being late but if this forces the bank to access your savings then there is little you can do about it.