Many Financial Institutions Are Getting Into Payday Loans

Many Financial Institutions Are Getting Into Payday Loans
Payday loans,​ sometimes called paycheck advances or​ cash advances,​ are small,​ short-term loans .​
(Don’t confuse this cash advance with the​ term used when you​ borrow money against a​ prearranged line of​ credit .​
They are far from the​ same thing.) These payday loans do not require a​ credit check and are typically for amounts smaller than $1500 .​
This kind of​ loan is​ normally to​ help the​ borrower get by until their next paycheck when money is​ tight .​
How you​ go about getting payday loans is​ simple .​
The simplest way to​ receive payday loans is​ to​ give the​ lender a​ post-dated check,​ which will include the​ money borrowed plus interest .​
The borrower will get cash in​ return and the​ lender agrees to​ hold the​ check until the​ borrower’s next payday .​
On the​ date indicated on​ the​ check,​ the​ lender can process it​ normally or​ electronically withdraw the​ money from the​ borrower’s checking account .​
Today,​ you​ can find lenders that offer payday loans everywhere .​
Most often,​ they work out of​ small stores .​
However,​ even large banks and financial service providers have begu​n offering various forms of​ payday loans .​
A new variation on​ payday loans may be available from your regular financial institution! Check with your bank and see if​ they offer something like a​ direct deposit advance! If you​ have your paychecks electronically deposited in​ your checking account each payday,​ your bank may offer to​ give you​ a​ small payday cash advance .​
When you​ get your next paycheck deposited,​ the​ bank will withdraw the​ amount you​ borrowed plus the​ agreed upon fee for the​ service,​ which falls somewhere between 10-20% normally .​
A twist on​ payday loans may be available through your tax preparation service .​
Many of​ the​ services have begu​n offering refund anticipation loans to​ those they prepare taxes for .​
They’ll loan you​ a​ fixed amount and then it​ will come out of​ your tax return later,​ plus their fee.
There are also many lenders online willing to​ offer you​ payday loans .​
It requires you​ fill out an​ online form,​ give quite a​ bit of​ personal information and then you​ will either be approved or​ declined .​
Most are approved and you​ will quickly have money in​ hand through wire transfer or​ other available methods .​
Be careful who you​ choose to​ receive payday loans from .​
Shop around and look at​ many lenders before choosing the​ one you​ wish to​ use .​
Some charge much higher rates for their services,​ which will cost you​ money in​ the​ long run .​
Also,​ be prepared to​ pay back the​ payday loans immediately after your next paycheck arrives .​
If you​ fail to​ pay it​ back,​ hefty charges can be added to​ your loan and you​ can end up paying much more than you​ planned.

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