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