Because of the economy over the past few years various options for obtaining short term loans are becoming more and more popular. The most popular option is known as payday loans, also called cash advances. Payday loans can be an excellent source for emergency cash like a sudden auto repairs, an unexpected bill, etc. And since payday loans are growing in popularity, there are more people just want to learn what a payday loan is, and if it is something that may be right for their situation.
Exactly as the name sounds, payday loan is a short term cash advance. The cash advance can be anywhere from a couple hundred dollars to as much as fifteen hundred dollars in some instances. The advance is only intended as short term loan. Payday loans are set up to typically be paid back in full approximately 7 to 14 days.
Many payday loan companies do not do credit checks. The only requirements is general is that you have to prove your identity… be over 18 years of age… verify your monthly employment income by pay stubs, etc. or accepted monthly income like social security payments. You provide evidence that you have the ability to repay the loan.
There are two basic methods to obtain a payday loan:
1) You can go to a payday loan store or business office and apply there. All companies have varied procedures but in general you complete an application and secure the loan by giving them a post dated check. The check will be dated for the day the pay back amount is due. You can either go and pay the amount, and have the check returned to you. Or just allow them to process that check on that particular day.
2) More and more people feel that a far better option is online payday services where you can apply right from your computer from the comfort of your home. With using an online cash advance service the money is sent directly into your bank account. And then on the agreed upon payback date, that money is drafted from your account.
The significant thing to realize with cash advance or payday loan services is that they are not at all the same as regular loans from a bank, credit union, etc. Those types of loans are set up to be repaid over a longer period of time by making regular payment installments each month. By contrast, with payday loans the full amount including the finance fee is paid back completely in approximately 7 to 14 days.
These two types of loans are completely different and they should not be compared with each other. The purpose of payday loans are to help out in situations when you temporarily need quick cash to cover an emergency situation or an unexpected bill until you get more money which usually your next pay day.
The majority of the criticisms that you may hear about payday loans is because people incorrectly compare them to regular installment loans. This would clearly make the payday loan fees appear at a much higher interest rate.
The key is to know the fees upfront BEFORE you agree to accept the payday loan. In general you will find fees approximately $20 to $30 per $100 advanced to you. So if you accept a $100 payday loan… you can expect to pay back as much as $135 about 14 days later.
As the repayment due date gets near and you are unable to repay a loan as scheduled, most companies will work with you and agree to extend the loan allowing more time for repayment. Of course there will be an additional fee involved for the extension.
Getting a payday loan is actually a simple procedure. And applying online makes it a very convenient process. No credit checks makes it an excellent source for people with less than perfect credit who are in need of quick cash to resolve a temporary situation.
Just make sure that you know all the terms upfront before you agree to accept the cash. Know the total payback amount that will be due. Know the exact date it will be due. And most importantly, know that you will have the ability to pay it when it is due.
BadCreditAssistance.com reviews customer feedback to select the best online payday loan services. For more information regarding cash advances and to submit a, no obligation, online application go now to: www.badcreditassistance.com/payday_loans.html
Popularity: 2% [?]
