The world is a strange place and when you are living in America you can always face uninvited expenses. Payday loans are here for your help but only if you have enough savings to pay your loan with a high interest. Payday loans can be your life saver in sudden emergencies.
Payday loans are actually small loans which are unsecured. These loans are shot-termed and the borrower can get them instantly through direct lenders. The pay day loans are also known with different terms. It is also called cash advance, payday advance cash, salary loans, payroll loan, or small loans because of their fast lending. There are so many payday lenders and stalls are around America so it is never so hard to find a payday loan near you.
A question might raise your eyebrow as to why and when you can need a payday loan. Suppose you hit your car in a tree in a storm. Or it is also possible that you run out of fuel with no cash in your pocket. These are some crucial times in which you find yourself trapped. You will definitely want a loan on any sort of interest at that time. So payday loans will be the best choice.
Banks usually do not give away small loans for personal daily use. For example if you have to pay your electricity or gas bill or buy grocery you cannot run towards a bank. Life has no surety and anything can happen anytime. If any such mishap occurs in your family and you need immediate financial help for a treatment of a family member, you can count on payday loans.
Payday loans lenders follow a simple procedure of lending and getting repayment of their loans. Let us see how these payday loans actually work.
It is quite easy to sum up the process. You need a loan of 200$ for anything and it is urgent. You simply go to a payday lender and write them a check with the required amount. They inform you about the interest you will have to pay with it.
You get your loan and then when you receive your next pay check the lender will cash it. You will not have to go through a lengthy process to lend and return the loan.
The interest rate for payday loans is what makes it a dangerous monster for people with low income. Obviously if your income doesn’t match with the interest on your loan you will be unable to pay it full.
Payday loan lenders charges a 15$ interest fee on every 100$. This is quite a huge extra amount to pay with a low salary. It means if you get a two week loan the APR will be a 391%. You might not think of these factors at the time of emergency but you will definitely feel bad when you realize it.
If you can afford such a high rate then these loans can be a silver lining in the dark sky. You can consider thinking of some alternative to borrow and pay with low income. But if you are planning to do so, do it on your own risk. See what you can do for it.
The rollover is more of a rollercoaster if you get to know how it works. It is just a more complex solution for your loan repayment. If for instance, you are a low income individual but you need a payday loan, you can roll your payment over.
By doing this the lender will give you an extension for your payment date. You will only have to pay the interest rate of your loan. But the tricky part starts now. The more time you get for you payday repayment, the interest rate for it will also include for the next time. It eventually makes the interest rate almost equal or half to the actual borrowed amount.
For example if you borrow 300$ with 45$ interest and you get two week relaxation to repay. It means that the interest rate will be now tripled. It will become all the more with your delicate income. You will eventually have to pay 135$ with the 300$.
It gets almost impossible to get out of the trap when you once get into it. The loan repayment of payday loans is not only difficult and expensive but risky as well. If you have settled for a payday loan and you are unable to pay it, you are in a big trouble.
Usually your credit score doesn’t count for these loans but it can also be at risk with late payments. Your lenders can set a complaint against your paying tactics to your bank. They will eventually take action and it will drop you credit score. It will also impact negatively on your credit history.
Your lender will continue to try getting money out of your account in small amounts. If your account doesn’t have enough for their payment they can file a case on you for fraud. Stay out of the late payment if you don’t want to end up in the court room.
There is now a nationwide network for lending payday loans online. You can easily request for one to get loans without any paperwork or lengthy procedure. There is no need for visiting your lender again and again to get a loan. Just sit back and request for a loan.
If you are unsure of the interest on your amount of loan, you can also use payday calculators. It will calculate and compare your APR rate. You can get a 1 hour payday loan even with a bad credit when you apply online.
Many lenders check your bank status and credit history before lending you. But when you apply through payday website, it becomes an easy 1-2-3 process. It only requires your information but doesn’t check your credit history or good or bad score.
This factor might be compelling for you to get fast cash online. Be sure of the fact that the interest rate for online application can vary and also be high than the direct one.
Learn how to apply for a payday loan online and get instant approval. Just follow these few simple steps and get immediate cash for your emergency needs. If you are applying online from any other website make sure it is certified from Better Business Bureau.
In order to make sure that you are eligible for a payday loans, look down for the requirements you need to complete before applying
If you complete the eligibility criteria, you can easily get a payday loan in an hour’s time. Your bad credit will have nothing to do with the approval of denial of your request.
Both of your direct and online lenders can back off if they find out certain unacceptable stuff about you. Your loan request can be termed as unacceptable and incompetent if you are a military member. The state laws demand a 36% APR when it comes to lend to a military man. So, most of the lenders exclude them from the eligible applicant’s list. Others factors include:
Keep these factors in mind and apply for a payday loan only if you can manage all the expense and the requirements.
It is obvious that not a single man made thing in this world comes perfectly. Everything has both its benefits and some drawbacks. Let us see some useful advantages and drawbacks of payday loans.
Payday loans were introduced in USA to cope up with the rising emergencies in the country. Today you can witness so many payday lending stalls in front of stores and markets with neon billboards. These small short termed loans can be a source of relief in your hard times.
You can get a loan right away when you need it. Just visit a payday stall, sign a check and get the amount. You get the loan on the average interest rate when you apply with a direct lender.
Although the interest rate for online application is more than direct borrowing but it has its benefits as well. When you apply for payday loans online you don’t have to worry about a credit check. You will have no need to visit your lender time and again. Also, you get instantly approved directly from the payday site.
To many people out there payday loans are a trap. It is easy to get involved with the lending stuff but difficult to escape. When you are in a hurry to solve your emergency problems, whether it is your college fee or car repair, you need speedy cash. Pay day loans satisfy your needs for the time being but with a huge interest amount.
The high interest rate is way more than the normal personal loan interests. This rate even makes the rollover option a drastic decision. You should only consider getting a payday loan if you can afford to ignore the APR.
In order to pay your payday loans you can choose the online method as well as the direct method. If you find it easy to pay online then visit the company’s website and pay there. If not then visit your lender’s office and clear your loan.
You can also give access to your lender to cash your payroll when the payment time comes. A bank draft can also be made specifically for your payday loans payment.
If you have applied through a direct lender you can contact him by calling in his office or on his personal number. If that doesn’t work simply visit your lender’s office and discuss and solve your issues directly.
If you have applied online then you must have the phone number, email address, and mailing address of the company. You can also ask questions on their FAQs page. If you have applied from payday.com then you can call then following are the ways you can reach the customer services:
407 Vine Street #277
Cincinnati, OH 45202
United States of America
Staff Write July 29th, 2018
Posted In: Payday
Like many other financial institutions payday is also a company which offer loans. These are high cost and short term loans that comprises of small amount. It is also called cash advance loan, salary loan or payday advance. This Payday advance is a short unsecured loan which borrowers have to return with their next payday check. These loans are usually given to people who have a bad credit score. If any borrower cannot pay back the loan in time then there are few alternatives which he or she can adopt depending on the situation.
There are two ways by which payday loan can be borrowed. First one is online and the second one is in person by visiting the store. If you visit the store, lender will give you money in 15 minutes or so but if you do it through online it might take one day for the transaction.
In return the lender will ask you for a signed check and a permission to electronically withdraw money from your account. You have to pay the money back with the next payday. If the borrower does not visits the store on the set date or he doesn’t have enough money in his account to repay the loan then the bank, in addition to the loan cost will also add interest fee as a result of the failure of repayment.
How much loan you can take from payday depends on the financial status of your account and the state laws. Most states allow the loan of $300 – $1000 but this doesn’t mean that you can always go for the higher amount.
The lender will first check all the necessary details like your income, current balance, expenses and then lend you money depending how much you can easily payback.
To qualify for payday loan you need to have a bank account, an ID and proper income source and your age must be atleast 18 years.
Even if you qualify these conditions there are still some circumstances that can cancel your eligibility. Let’s take a look at what are those conditions:
The cost of loan in both cases i.e. the store and through online, is different. If you take loan via visiting the store then the cost is $15 for every $100 i.e. 391% APR. But if you take loan via online then the cost is $23.53 for every $100 which is 613% APR.
If you do not pay on the first time then your interest will increase. It will keep on adding until you pay the whole amount. In few months you will have to pay more than you borrowed and that’s why payday loans are risky.
If you do not pay back the loan in the given time then it might cause serious problems for you.
Instead of going for the loan there are other better options which you should look at before taking any such steps because borrowing loans is easy but when it comes to repayment it becomes a nuisance. Let’s take a look the possibilities we have
There are few alternatives available of pay day loan but even they are not much advised. One of them is long term pay day investment loan studies have shown that people who first took payday later opt this one to repay their first payday loan.
For this loan the repayment time span is three years. You can do this via online or by visiting the store. Another alternative is auto title loan, in this the lender uses equity of the car as credit and if you do not pay the amount in time then the lender might seize your car.
Staff Write July 29th, 2018
Posted In: Payday
As the trend of getting Payday loans is becoming common, the trend of defaulting on such loans is also increasing. These loans have gained popularity in the state of Texas as well. However, of their very high APRs (often in hundreds of percentage) it becomes difficult for people to repay them. Thus, instead of being useful, they often end up causing more harm than good. This article will let you know what will happen if you can’t repay your payday loans.
What is a Payday Loan?
Payday loans are small personal loans which you take to fulfill your needs. As shown from their name, these loans are repaid on your very next payday after you take out the loan. To get the loan, you write a check to your lender of the amount you want to borrow along with the finance charges. These charges are not fixed and vary from lender to lender. At your next payday, they deposit the check to the bank in which you have an account and draw the money on the due date. You can also authorize the lenders to electronically draw money.
However, these loans are not always small and you can ask for bigger loans as well. You can also apply to repay them in installments. Otherwise, smaller loans are to be paid in one lump sum. Still, there are rare events that these loans actually become beneficial.
Will You Go to Jail if You Can’t Repay Your Payday Loans?
Though Payday loans are small loans that are to be paid until your next payday, yet most of the time, people default on them. This is because of their APRs which exceeds hundreds of percent. Also, often times, it is difficult for the people to repay them as soon as they receive their next paycheck. They end up getting rollovers which means you ask for the permission to repay on a later payday. However, the loan fees keeps on accumulating which means that your APR and interest rate will increase.
The loans you get from the banks are different in a way that the banks have information about your assets. And in case you default on your payment several times, they have the authority to seize those assets. However in payday loans, you don’t have to provide any information about your properties or assets. Thus, there is a misconception that if you fail to make payments, you can get arrested. However, this is not true. If you do not repay your payday loans, you won’t go to the jail.
What Will Happen if You Can’t Repay Your Payday Loans?
Failing to repay a loan is not a criminal offense rather debt collection is a matter of civil law. There are US protection laws for people who have financial problems and can’t repay their loans. Our US law is very clear about the matters of debt and one cannot be imprisoned for not being able to clear the debts. However, the creditors can file a case against you in civil courts for the collection of debts but not in criminal courts. The people can file for bankruptcy protection in case they default on loans.
Since you haven’t offered anything as mortgage, the collection of payday loans for lenders is a difficult task. They have a right to pursue debt collection through legal ways and can do that through civil courts. However, often times, things don’t go that far and they get money out of you by calling you day and night. Still, in case their check keeps getting bounced because of insufficient money in your account, they might threaten you with a lawsuit. They might claim to get you behind bars if you fail to make repayments but that is not true.
No creditor can put you in jail for the sole reason of defaulting on a payday loan. Only U.S attorneys or Prosecutors can do that if they believe that you have committed a crime. But that only happens quite rarely because they know not being able to clear debts is not a crime. In fact, most lenders know that Prosecutors don’t even take such cases because the interest rates are very high. Sometimes, the lenders might try to intimidate you with fake calls but do not let them scare you.
The other reason for the creditor to not go to the Prosecutor is that he knew that you would be unable to repay the loan in time with all of the interest rates. Because you would not have gotten the loan in the first place if you could repay it in such a short amount of time
Still, if you are worried that you may have to face charges due to defaults on your payday loans, then file for bankruptcy as soon as you miss a repayment. This will save you from all the collection efforts that the creditor might pursue. Moreover, it will remove most of your debt and will give you a fresh start.
Staff Write July 29th, 2018
Posted In: Payday