Payday Loans: A Simple Guide

All About Payday Loans

These loans do not provide large sums of money to their customers. The borrower is expected to repay the money within a short period of time.

Payday Loan

Who is eligible?

Payday Loans: A Simple Guide

There is no strict criterion mentioned for qualifying for the loan. Generally, everyone over 18 years of age, having a permanent job and holding a bank account are considered eligible.

Some lenders will only insist that the applicant be 18 years of age. Therefore cash loans will be offered even to those who do not hold bank accounts. Furthermore, some lenders even accept other income forms like unemployment benefits.

Difference between conventional loans and payday loans

While a payday loan is designed for meeting unexpected small bills, the former is designed for big items, some of which include buying a new car, holiday, to prevent cheques from bouncing, to make credit card payments or even for debt consolidation.

Moreover, conventional loans have longer repayment duration. In other words, borrowers are able to repay their loan over a period of few years, as against the 30 days repayment period imposed on payday loans.

Lenders of these short term loans are not fastidious when it comes to lending money and often lend money without conducting a credit check. On the other hand banks and finance companies lend their money only to people with good credit rating and good income. No wonder people with bad credit often still get approved.

The biggest difference lies in the rate of interest. Interest rates on payday loans are much higher mainly, because finance companies consider such types of loans to be highly risky.

Application to these types of loans has become child's play because of the internet. It can be filled within a few minutes from your home itself. There is no interview, no wait and no embarrassing questions asked.

There are different types of these loans available. Online payday loans among them is the most popular. Since it is processed through the net, its approval is fast and offer cash to the borrowers almost instantaneously. It therefore serves the urgent need of the borrower. Moreover since the loan taken is not big it can be repaid on time. They are convenient, but use it occasionally and not as an additional source of income.

Borrowers must look into both the pros and cons of payday loans. They must ensure that it is taken only during times of emergency and not taken too often if you do not want to experience crisis in your monthly budget.

Payday Loans: A Simple Guide

Kevin Walker is an expert in money saving tips. He also runs mymoneycredit.com a site dedicated managing a list of Payday Loan Lenders and other flexible lending solutions.

Payday Loan - Yes You Can Avoid Being Scammed

The payday loan industry has had a surge in recent months due to the downturn in the economy. It seems like there is an advance payday lender on every corner of every town and every city ready to give you a loan on your next paycheck. You can bet that where there are people struggling to make ends meet there is a payday loan shop set up nearby. And if that weren't convenient enough there are a million websites ready to serve this need.

But it is exactly this environment of urgent need that makes the online payday industry such a fertile ground for online scammers and frauds. Websites that are guilty of everything from tricking people into signing up for 30 day trials that end up charging when the trial date is up to flat out identity theft.

Payday Loan

But if you are looking to get a payday loan, yes you can do it without getting taken. The solution is so easy no one should ever have to worry about being taken while searching for a loan. The problem is consumers just don't know to look for it.

Payday Loan - Yes You Can Avoid Being Scammed

What I am talking about is the CFSA seal. The CFSA , which stands for "The Community Financial Service Association" is a regulatory service set up to oversee the loan payday industry. Simply Put, they are there to help keep you from getting robbed. Every payday loan service and website that the CFSA monitors is required to place the CFSA seal on their website in plain view. This ensures that consumers who know will be able to find whether or not the websites they are searching are covered. If you are searching the Internet for a payday loan, yes you can feel safe provided you know to look for the CFSA seal while you are doing so.

Payday Loan - Yes You Can Avoid Being Scammed

Aff4.com is a resource that can help you avoid some of pitfalls of a payday loan. It also provides a list of "Safe" payday loans direct sites that are covered by the CFSA seal to help you get started.

Payday Loans

Payday loans can be defined in two different ways. Payday loans are considered a similar term for cash advances or paycheck advance. The second definition thus rates payday loans as small, short-term loans (typically up to ,500) that doesn't require a credit check and is intended to bridge the financial gap, which occurs sometimes between the pay day of the previous month and the current month.

Payday loans are typically given out in cash. As a mode of security, a post-dated check is issued by the borrower to the lender. The check includes a figure which is a total of the original loan principal and an accrued interest and bears a date that coincides with the borrower's next pay day. The check is cashed by the lender either traditionally or through electronic systems from the borrower's bank account.

Payday Loan

Lenders of payday loans usually operate from small stores or franchises; the recent times have also seen the large financial service providers offering payday loans under different terminologies. While some of the well-known financial institutions offer payday loans in the form of direct deposits, others keep it plain following the standard payday loan rules. However, direct deposits relieve the burden of writing checks and are meant only for people who receive their monthly payments electronically. But in the United States, where most of the states have their own usury laws, forces the payday loan lenders keep the interest rates within a certain limit. Thus, the lenders fund payday loans through banks chartered in a different state.

Payday Loans

Payday loans are a form of sub-prime lending. Though the amounts and the interests seem lesser than high interest rate credit cards, it has been able to raise bigger controversies than the credit card. While some claim that payday loans are targeted exclusively to the young, the low-income communities and everyone who doesn't understand the time-value of money, others rate payday loan lenders as loan sharks, the high interest rates (250% or more when annualized) being the reason.

Though lenders of payday loans argue that the charged interests are less than what the credit cards charge, it has been proven that every 0 payday loans with a fee is equivalent to a 391% of annual percentage rate; if the check issued against the 0 bounces back, the penalties equal to a 1,251% of annual percentage rate of a normal credit card. Therefore, payday loans, being a form of loan with very high interest rates, is always better to avoid, especially for someone who is aware of the time-value of money. Even if situations demand for taking out a payday loan under some emergency, care should be taken that it does not become a habit. It is always better to consider the alternatives before opting for payday loans, another reason being the rollover that may double both the initial payment amount.

Payday Loans

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Easy Money = Payday Loan

There are really times when using Short term Loan is the best option we have. We can't predict what is about to happen. We may be saving money, doing our best to not make any loan, paying our rent on time and so with our bills, and then suddenly one of the family members got sick. You just paid the rent and the bills and you are left with every single penny budgeted until the next payday. Who do you ask for help?

If you need the money ASAP and you want a hassle free experience because you don't want to add frustration to your depression, if you don't want any formal engagement or talks, then what you are looking for is the easy and fast Cash Advance Loan.

Payday Loan

This type of loan is designed to bridge the gap between emergency needs and the next pay check. This is an advantage for people who have limited option in terms of filling a loan. This can also be used, if the need of money has to be delivered on the same day- This type of Short term loan is known for its most convenient way of transferring the money to your checking account. They has 24 hour processing of loan, this means the amount you borrowed will be transferred to your account within 24 hours upon applying for loan. With This loan, you can apply even if you do not have that perfect credit rating.

Easy Money = Payday Loan

If you want a stress free way of filling for a loan, you can go ahead and apply for a Payday Loan.

Easy Money = Payday Loan

For more information about payday loans you can visit today's Payday Loan. Every article is worth reading as it gives you honest insight about Payday loans.