You can find a payday loan at one of hundreds of different websites online. Payday loans are considered cash advances, payday loan, paycheck advance etc. Some of the lenders will offer loans ranging from $100 up to $1500. Payday loans are short-term loans. The loans were meant for bridging a borrower cash monies that to fill gaps amidst the borrower's payday.
If you are new, most likely you will qualify for the least amount until you build up a relationship with the company. Once you build up this relationship then you may qualify for the larger amount.
Payday loans have fees attached. If you qualify for $1500, likely you will pay close to $100 or more toward the fee. This fee is paid in the event if you have the roll the loan over to the following week or two weeks.
The borrower is given a paycheck advance in cash. The cash is secured, because the borrower must post-date a check that includes the amount of the principal loan and the interest accrued.
These loans have maturity dates. Generally, these dates coincide with the following pay date of the borrower. Lenders process the borrower's check upon maturity, which is often deducted by means of withdrawal through electronic transfers. The amount is deducted from the borrower's checking account.
If the loan is borrowed offline, some payday lenders will allow the borrower to repay the payday loan back in cash.
To get these loans the borrower must show proof of employment, have a picture ID, and his last two bank statements. Once the borrower supplies this personal information and fills out an application, usually the money is direct deposit into his account. If the loan is from an offline service, the borrower may receive cash, or check's in some instances.
Payday loans can cost a fortune. If you take out a $300 loan for instance, you will pay $50 give or take back on the interest accrued alone. Thus, if you roll this loan over another two weeks, you will pay $100 back on the loan. If this becomes a cycle, you could end up paying $1000 on a $300 payday loan.
These loans are intended for emergencies only. If you need money to repair your vehicle, or to pay shutoff bills, thus this is deemed an emergency. Medical expenses, etc is also a type of emergency.
If you need a payday loan, make sure that you use it in emergencies to avoid going in debt. Otherwise, a payday loan could become a vicious cycle that could lead to major financial burdens.
