Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter


redhotloantips fat loss

Payday Loan Advantages

Written by: Max Hunter

In the past few years, advertisements for payday loans are popping up everywhere - on store signs, in newspapers, on billboards, and especially on the Internet. Some payday loan companies advertise by direct mail, so you may even see ads arriving in your own mailbox.

Sometimes they're called cash advances, payday advances, check loans, or even post-dated check loans, but all of those terms mean essentially the same thing - a loan to carry you over until your next payday. While you've seen the ads, you may not know what payday loans are, how they work, or how to go about obtaining one.

A payday loan is a short-term loan, generally for 14-30 days, that is paid back by writing a post-dated check, or agreeing to an electronic withdrawal, to be deducted from the borrower's bank account on their next payday. Borrowers may be eligible for loans of anywhere from $100 to $1,000, depending on the lender's policies and the borrower's income. Just like every other type of loan, there are advantages and disadvantages to this type of borrowing.

On the plus side, payday loans are easy to apply for, and easy to get. Borrowers are asked to fill out a short application form that includes where they work, their home address and telephone number and monthly income. Applicants also provide information about their bank account, including the name of their bank and their account number. In general, the application is much simpler than those required by traditional banks, and less verification is required.

Borrowers are asked to provide a recent paystub, their latest bank statement, and a copy of their driver's license. There is no credit check involved, which shortens the time frame considerably. The entire process takes just a few minutes, instead of days or weeks, and can be approved on the spot, resulting in the borrower receiving a cash loan in approximately half an hour. Once approved, the borrower writes a post-dated check for the date of their next payday, and for the amount borrowed, plus the lender's fees.

Getting a payday loan from an Internet lender is even quicker and simpler. Borrowers provide their bank account number and the loan money is direct deposited into the borrower's account, oftentimes within a matter of hours. Repayment is made the same way, by direct withdrawal from the borrower's bank account, for the amount and on the date specified in the loan agreement. Repayment arrangements vary and some companies give the borrower an option to roll the loan over by paying an additional loan fee. The borrower, therefore, has the option of paying off the entire loan on the original date agreed, or of paying additional fees to extend all or part of the actual loan to a later date.

The other major advantages to getting a payday loan are that there is no collaterol required and no credit checks involved. Payday loans are available to people who are working, whether or not they have good credit or are current with all their monthly obligations. A person can qualify for a payday loan even without owning a home or a car, or any other form of real property.

Payday loans can be especially valuable in an emergency situation. Maybe your car breaks down or you have an urgent medical need and the unexpected costs were not anticipated in your monthly budget. Nearly everyone finds themselves in an occasional situation where they absolutely need some extra cash and don't have savings or other resources to tide them over. In those cases, a payday loan can be a lifesaver.

Plus, payday loans are easy to find. There are literally hundreds of websites dedicated to either making payday loans or to helping the consumer locate the best lenders. The borrower can find the particular loan that best fits their needs, without ever leaving the comfort of their own home.

Is there a downside? Of course, as with any type of borrowing and lending, there are disadvantages to payday loans. For example, they cost more than traditional loans because lenders are allowed to charge higher loan fees or finance charges, for short-term, unsecured loans. Most payday loan companies offer flat fees that are based on the amount borrowed and the amount of time until it is paid back in full.

For example, some lenders charge a flat fee of $15 per $100 borrowed, which doesn't seem like much at first glance. However, a $15 fee per $100, when examined on an annualized basis, amounts to an annual percentage rate (APR) of 391%. In fact, the average APR for payday loans has been estimated at 450%.

In addition, more fees come into play if the borrower needs to roll the loan over. If, for instance, the loan were rolled over three times it would cost an extra $15 each time, in addition to the original $15. In that case, the original $100 loan could cost the borrower as much as $60.

If you are contemplating a payday loan, it is important to shop around, make sure you understand all of the fees involved, and make sure you borrow only enough that you can pay it off in full by your next payday.
About the Author

Max Hunter is the author of many credit related articles. If you are looking for help with Payday loan or any type of faxless loans please visit us at http://www.PaydayLoanChoice.com

Other Related Articles:

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/rliu008/public_html/redhotloantips.com/rotator.php on line 7

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/rliu008/public_html/redhotloantips.com/rotator.php on line 7
A Guide to Debt Consolidation Loans
Should you find yourself overcome by debt, you might want to consider debt consolidation loans. These loans are designed with the person in debt beyond their means in mind, allowing for repayment of the outstanding debts while combining multiple...read more

Understanding the other side of Debt Consolidation Loans
In recent years debts have became a part of most of our lives. Almost all the things are made available to us via credit. However, this easy availability of credit has its own share of pitfalls. Some of the borrowers take excessive amount of...read more

2nd Mortgage Loan After Bankruptcy - Get Approved Online With A Sub Prime Lender
A 2nd mortgage loan after a bankruptcy is the easiest way to access cash. With online sub prime lenders, you can qualify for a mortgage as soon as your bankruptcy closes. But for near conventional rates, it is better to wait two years and build...read more

Return to Home


Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map