payday loans

Online Payday Loans

Payday Loan

Payday loans are loans taken at a very high interest rate and for a very short duration of time. It is so because usually this type of loan is taken in the time of urgency. With such kind of a loan, not only does the borrower have to pay a hefty sum of interest, they are also required to pay an extra fee (and quite high as compared to others’) for exchanging the loan for cash. Often the interest rate and the fee (taken to turn the loan into cash) can even amount to equal, if not more than, the borrowed sum. They are also known as Cash Advance loan or Check Advance Loan.

Payday loans are loans taken at a very high interest rate and for a very short duration of time. It is so because usually this type of loan is taken in the time of urgency.

These loans are to be repaid either through cash or a post-dated check in the name of the lender, which is either to be deposited at the bank upon mutual agreement or on their payday, depending upon the situation.

Payday loans, though has a high rate of interest, is a very popular kind of borrowing method. The reasons for this popularity is the ease of acquiring the loan, in short time and it is given to people who have a low or bad credit score.
The rate of interest for this loan reaches 17.50% per 7 days and most of the loans sanctioned are for a tenure of 30 days or less. The loan amount are usually in the range of $100 to $2,000.

Online payday loans

The payday loans are also available to people through online websites. These companies provide all the necessary details on their website. If it is an urgent requirement but you cannot go to the store, then online payday loan is a good way to get it and get it fast.
In order to get the loan you will need to fill up an online form giving all the details, like your personal information, contact information, income etc. This is the easiest way to get the amount transferred (almost) instantly to your bank account. Through online payday you can also opt for installment payments, where you pay little at a time until the loan is repaid.

However, the rates of interests and the acceptance of your loan depends on the state you reside in. Because of the fact that the 32 states that allow payday loans have various rates of interests, you eligibility depends on your area of residence.

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Payday Loan

by Kylee Sanders

Payday loans are loans taken at a very high interest rate and for a very short duration of time. It is so because usually this type of loan is taken in the time of urgency. With such kind of a loan, not only does the borrower have to pay a hefty sum of interest, they are also required to pay an extra fee (and quite high as compared to others’) for exchanging the loan for cash. Often the interest rate and the fee (taken to turn the loan into cash) can even amount to equal, if not more than, the borrowed sum. They are also known as Cash Advance loan or Check Advance Loan.

Payday loans are loans taken at a very high interest rate and for a very short duration of time. It is so because usually this type of loan is taken in the time of urgency.

Payday loans, though has a high rate of interest, is a very popular kind of borrowing method. The reasons for this popularity is the ease of acquiring the loan, in a short time and it is given to people who have a low or bad credit score.
The rate of interest for this loan reaches 17.50% per 7 days and most of the loans sanctioned are for a tenure of 30 days or less. The loan amount is usually in between the range of $100 to $2,000.

Online payday

The payday loans are also available to people through online websites. These companies provide all the necessary details on their website. If it is an urgent requirement, but you cannot go to the store, then online payday is a good way to get it and get it fast.
In order to get the loan, you will need to fill up an online form giving all the details, like your personal information, contact information, income etc. This is the easiest way to get the amount transferred (almost) instantly to your bank account. Through online payday, you can also opt for installment payments, where you pay little at a time until the loan is repaid.

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Understanding Payday Loan

by Kylee Sanders

The payday loan is a short-term loan that charges a very high rate of interest. The loan is sanctioned to almost everyone applying for it and does not turn away those who have low or bad credit scores. Since the loan amount it not very large (ranging in between $800 to $2000), the loan is paid instantly either in cash or direct bank transfer.

The payday loan is a short-term loan that charges a very high rate of interest.

Payday loan can either be paid through a check or cash. Usually, upon a mutual agreement a date is set when the lender may deposit the check in the bank, and it is mostly on the payday. The tenure for the loans is very short, starting from a week and up to 30 days, and as the tenure is increased an additional fee is also added to it. The interest rates start from 17.50% for a week. So, you may be subject to paying 300% in one year.

Due to the extremely high interest rates, some states do not allow payday loans to function. However, those that allow have put restriction as to the maximum amount one can borrow from payday loan services.

Here are a few things to keep in mind before you decide to take such a risky loan:

Consider the Cost

Take the cost into account. You should be aware that if you take a loan for a week, the interest rate is 17.50% (or more, like 29.99%), but in case the loan needs to be extended, then you will be charged a fee for it. Moreover, an extension for a year could cost you more than 500%!

You should find out the interest rate before you apply for the loan, and look for an alternative because there will be other payday loans available at lower interest rates and fees as well.

Take into account why you need the loan

These types of high-interest loans can be quite a pain to pay back to the lender. Think of the reason you need the loan for, what kind of loan would be the best option, for how long and whether you will be able to pay it back considering your current income and other expenses.

Though at times taking such a loan is the only way, one should be extra careful while signing up for the loan. Make sure you have checked and re-checked whether the company is authorized, any other options you may have, the details that you are filling in, the terms and conditions of the loan etc.

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Cycle of Payday loans

by Ryan Kendall

What is a Payday loan?

This is normally a short term loan, normally unsecured. These loans are not, despite their names dependent on whatever day your salary or wage is paid on. Payday loans depend on the borrower having a previous employment and payroll record and that is where all consideration of your financial position to take out a loan and repay it ends. These short term loans normally have a higher interest rate attached. Different states have different legislation on the amount of interest charged 36 – 40% APR ( annual percentage rate) being the norm but be aware, calculating the APR is not regulated as such and can create an enormous difference in the payback amount anything from 350% – 3500%. Strict attention to the terms and conditions and payback is necessary unless you want to find yourself in the uncomfortable position of a cycle of payday loans.

These short term loans normally have a higher interest rate attached.

When you borrow from a legitimate lender your credit ability is accessed, how much you can borrow and payback is worked out with you to form a responsible payment plan. This is not the case with a payday loan. They can look attractive, offering a short term loan amount to be paid back say within the month; but according to research this is what happens:

You borrow a certain amount for example, over a month.
You organize a pre signed check or authorize an electronic debit payment to pay the loan and interest back by a certain date, normally around your payday – hence the name..
The lending fee, anything from $45 upwards depending on the loan amount, will be taken out of the advance.
In a cycle of payday loans the borrower most times has not got the cash available to pay the amount back on time, resulting in returned or bounced check fees and as the lenders can repeatedly re- present the checks the balance of your debt continues to rise.
To manage the debt another shorter payday loan is taken out, to pay of the original loan. This also includes another lending fee and interest and needs to be paid back in a particular time frame and so the cycle begins…

Most individuals take out payday loans to help them through a cash crisis, but in reality research has shown that this can actually exacerbate the problem. Laws are in place to control payday loans and in some states they are banned but if you find yourself trapped in this cycle of borrowing to pay back debt from other loans, seek professional help to assist you manage your money and debt more responsibly.

Get Payday Loans

by Kylee Sanders

If you want to get a loan for a really short duration, say a month, because of an unexpected happening, you can get payday loans. Payday loans are basically short-term loans used only as an option for some emergency requirements. These cannot be taken for larger purchases such as a home or a car.

If you want to get a loan for a really short duration, say a month, because of an unexpected happening, you can get payday loans.

The lender provides a short-term loan, mostly unsecured to the borrower, which he has to return at the next payday. Frequently, some process of verification of the employment or income is needed, but not all payday lenders do this. The borrower issues a post-dated cheque in the name of the lender, which has the amount of the loan and some fees levied on it.

The borrower should return the entire amount to the lender at maturity period, and if he is unable to do that, the lender redeems the cheque. And if the account cannot provide that much of amount to the lender, then some extra fees is levied on the bounced cheque. The fees can sometimes be as high as the face-value of the cheque. The loan can even be rolled-over at the end of the month, and then extra fees will be charged.

Basically it is an expensive loan to take and you want to get payday loans, and then make sure you take it only when needed in some form of emergency. And mostly, in the US, the segments of population who take payday loans are- people without their college degrees, African-Americans who earn less than $40,000 annually and people who have been divorced or separated.

The payday loans are mostly used when people are suffering from seasonal and emergency expenses, back to school costs or unexpected bills or repairs.
In the US, payday has been legalised in 27 states and 9 other states allow it in a restricted manner. The reason for this is that, it is criticised as being predatory on the consumers. The fees levied are very huge as compared to the loans taken from traditional financial institutions like banks and credit unions. Another big reason is that the payday lenders are sometimes known to implement aggressive collection tactics.

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