Payday Loans Bridge Your Cash Needs Between Paydays

Payday Loans - Bridge Your Cash Needs Between Paydays
A fast and sure way to​ take care of​ emergency cash needs is​ to​ avail of​ a​ payday loan .​
a​ payday loan may also be referred to​ as​ post-dated check loan,​ or​ deferred deposit check loan .​
In the​ United States,​ the​ Federal Trade Commission calls it​ costly cash.
In fact,​ it​ is​ a​ short term cash advance to​ tide over expenses cropping up all of​ a​ sudden,​ like a​ big repair bill for the​ car,​ a​ medical bill,​ emergent travel expenses,​ meeting day to​ day expenses or​ any other expenditure that may require to​ be met at​ short notice .​
It is​ not intended to​ cover financial problems that may be of​ a​ long-term nature,​ which may be resolved by consumer credit counseling.
The services of​ a​ payday loan company are usually sought when there is​ a​ sudden urgent need for cash,​ which may not be available from any other source .​
There are about 10,​000 payday loan outlets operating in​ the​ United States.
The Internet is​ a​ good source for finding an​ outlet or​ store near a​ borrower’s place .​
Care is​ taken by these companies to​ locate their outlets at​ accessible locations,​ and to​ keep their working hours flexible and different from banking hours .​
Telephone calls to​ the​ payday loan store,​ a​ visit to​ their outlet or​ an​ online application are the​ some of​ the​ ways to​ apply for a​ payday loan.
Usually a​ payday loan is​ limited to​ a​ small amount; anywhere from $50 to​ $500 .​
On approval,​ the​ loan amount is​ deposited directly into the​ bank account of​ the​ borrower within 24 hours of​ the​ submission of​ the​ loan application .​
The borrower can rest assured that confidentiality with respect to​ the​ transaction is​ maintained.
The lending terms for these loans are structured to​ be hassle free .​
Credit rating has no bearing on​ the​ approval of​ the​ loan application and in​ many cases no credit check is​ done .​
So,​ a​ borrower with bad credit may also qualify for the​ loan .​
The borrower just needs to​ be at​ least eighteen years in​ age,​ and should have a​ full time job with an​ income of​ above a​ thousand dollars per month .​
He or​ she should be a​ US citizen with a​ checking account .​
Post-dated checks are generally given to​ the​ lender against the​ loan.
An advantage of​ a​ payday loan is​ that they are renewable and extendable .​
The loan is​ repayable on​ the​ next payday of​ the​ borrower .​
There are multiple options for paying back the​ loan .​
The lender is​ allowed to​ cash the​ checks given as​ security,​ or​ repay the​ loan amount personally at​ the​ office of​ the​ lender .​
However,​ if​ either of​ the​ options is​ unfeasible,​ the​ borrower can approach the​ lender for an​ extension of​ the​ payback date .​
Usually,​ however,​ such an​ extension is​ permitted only twice.
The interest rates for these loans are exceptionally high .​
To give an​ example: if​ a​ loan for $100 is​ taken for 14 days,​ which is​ the​ next date for one’s paycheck,​ then the​ amount to​ be paid back would be $115 .​
The annual percentage rate of​ which,​ on​ calculation,​ turns out to​ be a​ whopping 391 percent .​
In case of​ extension of​ the​ payback date,​ the​ rates would go higher.
So,​ the​ desirability of​ a​ payday loan would depend on​ the​ urgency of​ the​ borrower’s need and his capability to​ bear the​ interest burden .​
While payday loans are a​ fast and sure way to​ solving unforeseen urgent credit needs,​ on​ the​ other hand,​ they carry an​ exceptionally high interest burden.

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