Payday loans are the fastest and most convenient option for getting a cash advance for emergencies before your next payday. However getting payday loans and their repayments involve certain important aspects. Herein we are attempting to answer all your general queries related to Payday loans and we hope it will serve as a tool to open up any mystery surrounding payday loans or cash advance.What Is A Payday Loan Or Cash Advance Loan?We daily come across many loan types like housing loan, personal loan, and education loan. However, the payday loans are a new buzz in the market, and it is very popular. This loan is known by many names like “Cash Advance”, “Paycheck loan”, “Check loans”, and “Payday advance loans”. Let us understand what is a payday loan or cash advance loan and how and when it should be used for your maximum advantage. Payday loans are unsecured loans, which can be used for meeting your emergency financial needs and is paid back out of your next paycheck on your payday. Thus, payday loans are the shortest tenure loans among the other loans available in the market.
Are there any limitations on payday loan or cash advance loan usage?Many a times we face a situation when we need money badly but feel like our hands are tied as our payday is still several days away. In such a scenario, we either have to shelve or defer our plan of purchasing something or go for a heavy interest credit card loan to meet the obligation. The requirement could be to pay up unexpected medical bills, your kid’s school fee, to avoid bouncing of your issued checks or any other financial obligation. In such trying times, payday loans or a cash advance comes in handy. Thus, you can use this cash advance for whatever purpose. There is no restriction on the usage of payday loans.Am I eligible to receive a payday loan or cash advance loan?The best thing about payday loans is that they can be had even if your credit rating is not very good. The second best thing about payday loans is that taking a cash advance does not affect your credit rating. All you need to be eligible to receive the payday loans is to have a running checking account and a regular job.How should I apply for a payday loan?To apply for the payday loans, we would say it is easier to do than to say. You can apply for payday loans online using Internet. You may be required to supply some basic information such as your Name, Address, and your employer details. Some companies offering payday loans may ask for your Bank Statement or pay stub over fax. The documents required by these companies for payday loans are minimum in comparison to other types of loans.What is the fee charged for payday loans?Before applying for payday loans, we suggest that you scan 5-6 companies for the fees they are charging. Some companies offer payday loans without any fee for the first week.How much cash can I get with a payday loan?The amount of payday loans ranges from $100 to $1000 depending upon the repaying capacity of the borrower.What is the length of payday loans?Normally a cash advance is supposed to be paid back on or before your coming payday. Therefore, the maximum length of payday loan could be up to 30 days. However, some companies are flexible with respect to the loan duration as well. Payday loans can be extended until the next payday. This extension of payday loans however comes at a price.
How long does it take to get a payday loan?Payday loans are much easier to get and in less time than other loans. After applying for a payday loan online, you will get a telephone call from the payday lender. After completing the small formalities, the cash advance will be credited to your checking account the next business day.Does this mean I can enjoy my pay without waiting for my payday?Before you jump for a payday loan, please note that the rate of interest charged for these loans are higher than other loans. Extending the duration of payment will only increase the fees charged. The payday loans or cash advance loan should be used very prudently and only for meeting financial exigencies that cannot be avoided. Please remember that getting a payday loan or cash advance loan too frequently could upset your monthly budget and you may find it difficult to get out.
What are payday loans?Payday loans are short-term loans that are extended between two pay days. A payday loan is normally provided for 14 days. The borrower, on acceptance of the loan conditions, provides a check favoring the lender as security against the loan. On the due date, the lender deposits this check to recover the loan dues. The due date is generally the next pay day of the borrower. No credit checks are conducted for granting payday loans. Therefore, the FICO score of the borrower is irrelevant. It doesn’t matter whether the borrower has a bad credit history, or has no credit history, or has declared bankruptcy.Qualifications for payday loansTo qualify for a payday loan, the borrower needs to fulfill all of the following conditions. There are no exceptions.o You must be a US citizen.o You must at least 18 years of age.o You must be at a full time job currently and must be at this job for at least three months.o You must either have an active checking account or a savings account.
o Your after tax salary should be at least $ 1,000 or you must have a fixed income of $800.Cost of payday loansPayday loans carry a very high cost. Generally the lender fees for a $ 100 payday loan is anywhere between $15 and $25. It should be remembered that this fee is for 14 days as the loan itself is extended for these many days only. If one considers the cost on an annual percentage rate (APR) basis, the average is 391%, which by any standard is exorbitant. By law, it is mandatory for the lender to specify the APR to the borrower. Many lenders do compare the cost of payday loan against other forms of financing; but the common denominator of such a comparison is that all of them are very expensive.When to avail of payday loans?Payday loans should be availed only during emergencies. Considering the fact that the cost of carrying a payday loan is very high, it should be a resource of last resort. If one implements good budgeting techniques and has a good financial plan, the need for borrowing by way of payday loans can be minimized. Moreover, one must ensure that a payday loan is paid on time. Payday loans should not be rolled over or extended as within no time the borrower will find himself or herself in a debt trap where money may have to be borrowed just to repay the interest.Profile of a payday loan borrowero A typical payday loan customer is between 25 and 40 years of age with an annual income anywhere between $ 25,000 and $ 50,000.o According to the US Census report of Year 2000, the results of the payday loan borrowers survey are:22% of those surveyed hold a bachelor’s degree.51% of those surveyed have a retirement savings plan.In excess of two-thirds of those surveyed have a savings account.More than two-thirds of those surveyed have an annual income of at least $ 25,555.Why are Payday loans popular?They are popular for a number of reasons such as:o Credit checks are not required. The personal check that you make payable to the lender acts as security.
o Approval is quick. If all the necessary documents are submitted, your loan application maybe approved in minutes.o The paperwork involved is simple. Generally one or two documents would suffice which explains the loan process and your obligations.o The repayment process is without hassles. The check submitted as security is encashed on the next payday by the lender. You could extend the loan to subsequent paydays for a fee. However this is very expensive.o Easy availability. Payday loans are particularly appropriate for emergency situations provided the amount required is small and one is willing to bear the high cost of the loan.In summary, payday loans might be a viable option if you need cash and need it fast. You still should be careful who you are working with to obtain your loan. If you don’t need money right away, there is probably a better solution for you.
Do you need Great Ideas On Getting OUT of debt? If you do, you are not by yourself. Quite a few wish to accomplish economic liberty, however may not be sure of how to go about accomplishing this. The first thing you could do is request the initial credit contract from each creditor. They need to be in a position to produce this particular paperwork if they want to win over you in court. If your financial debt has been passed from business to business, they may not be capable of producing these documents. Whenever they are not able to do so, you’ve got the right to fight the debt. Another option will be to declare bankruptcy to obtain economic freedom. While you will probably be required to give over any financial assets you have, there are ways to protect the resources you actually have. Caution needs to be taken if you select this approach, but it is a solution to think about. In addition, you may decide to invest the funds you’ve got, enabling it to provide you with cash. The cash you make when you choose this method could then be employed to pay your debt downward. There are many ways to get from under a massive stack of personal debt. Pay a visit to http://www.personalfinanceninja.com/how-to-get-out-of-debt-without-using-your-savings/ to understand more about these tips to help you acquire the relief you would like and demand in the shortest time doable.