What to Know About Payday Loans
When you need to get fast cash, there is no better way than to obtain a payday loan. Such a short-term loan can solve some problems for your immediate financial stability. The good news is that payday loans are easy to get and they can be had from several places. A payday loan, also called a paycheck loan, is a small dollar loan (typically less than $100), with a one-week term, which is due on your next paycheck day. So, at the end of the month when your check is coming in, you just pay back the loan with your paycheck money.
are a type of unsecured loan that does not require collateral or a co-signing account. An example of this would be your credit card, car loan, or home equity loan. If you have an outstanding loan payment, you can use your savings, checking account, or credit card to qualify for the payday loan. If you have an excessive amount of debt, you may qualify for an over the limit or the age limit option.
There are different types of payday loans.
These include but are not limited to, installment cash advance, post-dated check advance, and electronic check advance. Your lender will explain the pros and cons of each type of borrowing before you sign any agreement or agree to any terms of repayment.
The most common type of payday loan
is the in-person payday loan. This means you go into an establishment such as a bank, restaurant, or local gas station, and you will hand the borrower a check for the amount you are borrowing plus the interest rate. Payday lenders will either accept your check or debit it from your bank account on the due date. Some payday lenders offer automatic withdrawal of the funds from your account on the due date. Once the due date arrives, the borrower must sign a document stating that he or she understands the terms of repayment.
Online payday loan lenders do not require any collateral
so you don’t need to provide a check with your signature in exchange for a loan. They are more likely to accept you since there are fewer requirements on the part of the borrowers. You need to provide your social security number, bank account information, and a recent pay stub from your job. If you have a co-signer, they may also need the social security number of the borrower, the birth date of the borrower, or a recent pay stub from your work.
It is important to note
that you can get charged a higher annual percentage rate (APR). This means that you will end up paying more if you borrow more money. Payday Loans are convenient and quick, but they should be used carefully. The lender may charge extra fees if you have bad credit or fail to repay the loan on time. When you borrow from payday loans that require collateral or if you can borrow more than you normally would be able to afford to pay back, you can help close the gap between paycheck by using them only when needed.