What Are Debit Card Loans? Is It Really An Easy Way To Get Money?

By Michelle L Published 12/12/2009 | Loans

Sometimes we face unforeseen financial problem and if we do not have the funds to solve the problem then we can be in big trouble. I am sure you are aware how difficult it can be for a person who faces an urgent financial problem and during such a situation, one can only think of solving the problem by getting a loan of some kind or the other. An option available to you if you are in need of a loan is debit card loans.

So what is a debit card loan?

It is basically a kind of loan where you give your credit card to the lender as a security against which the lender will give you the money that you need. One thing you should keep in mind is that debit card loans are not a long-term solution to solve your financial problem. If you are in need of short-term funds then you can consider getting this kind of loan but if you need a loan for a long period then it is advised that you opt for other kinds of loan instead of a debit card loan. If you are in need of funds to pay your credit card bulls, education fee, car repair expense, electricity bill, etc; you can consider getting a debit card loan.

The application for this kind of loan is actually a very simple procedure but you will need to fulfill certain requirements before you are allowed to get this loan. Given below are some of the requirements for debit card loans:

  • The applicant should be over the age of 18.
  • He or she should hold a debit card in his or her name.
  • The applicant should have a regular source of income.
  • He should also have an active checking bank account.

Generally, the amount of money that you can borrow by getting debit card loans arenít much and you generally will have to repay back the loan in a monthís time. As the loan is a short term loan, the rate of interest on it is generally higher than other loans. There are many benefits of getting a debit card loan and some of the advantages are flexible terms, no credit checks, no lengthy paperwork and quick approval and transfer of the loan amount in to your bank account.

However, before you decide to opt for this loan, read the documents properly to avoid any problems or misunderstandings in the future.