A payday loan is just what it
sounds like; it is a loan that is repaid on
the borrower's next pay date. These are very
convenient loans. They are better than
trying to borrow a significant amount of
cash from family or friends. Cash advance
loans can be set up for amounts from $100 to
$500 or more. The cash loan is obtained
either on the spot at a loan store, or
within an hour to a day from an online
lender.
Emergencies
always seem to occur right after a person's
paycheck has been fully spent. This can
create a dilemma for anyone. With payday
loans, the emergency can be paid off right
away. Car repairs, medical bills and other
demanding bills just go away once they are
paid.
A cash advance loan is a loan, not
credit, which is due with the following
paycheck. The due date will be at least 7
days ahead; normally loan periods are about
two weeks. People who only receive income
monthly, like retirees or those on
disability, can repay their loans the next
time they are paid. Payday advances are for
everyone, as is evidenced by the millions of
cash advances that are transacted daily.
People enjoy the speed and simplicity
of getting a payday loan. There are no long
forms or interviews to wade through. The
cash is either given out immediately at a
loan store, or electronically deposited in
an hour to a day by an online lender. At the
next payday, borrowers return to the store
with cash. Those who chose an Internet
lender will not have to do anything or go
anywhere. Everything is done electronically
and automatically.
Qualifications for this type of loan include
the following:
• Be an adult.
• Have a bank account.
• Provide proof of regular income.
Convenience and privacy are two reasons
people like to use a cash advance loan. The
online lending transaction can be done on
any computer, at home or at work. No one is
looking over your shoulder or listening in.
Transactions are fast and accurate. There is
no collateral to leave behind, as is the
case when borrowing from a pawnshop. Loan
stores may ask for a check to be written out
for the loan amount, but upon repayment the
check is returned to the borrower. Interest
fees for payday loans are low, considering
the short period of time they run. Some
people look at the fees as a reasonable
charge for the convenience. On a long-term
basis, interest rates are high, but for
short-term loans, fees are about $15 to $25
per $100 borrowed, we charge a mere $7.50. A
payday loan solves problems, especially in
emergencies.
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