Payday Loans

Payday Loans
A Guide to Payday Loans

Most all of us, regardless of how careful we may be with
our money, have found ourselves short on funds before our
next paycheck arrives. Often times, one medical emergency,
forgotten bill, or unexpected financial situation is all it
will take to completely drain any available savings,
leaving us vulnerable, unable to meet the rest of our
obligations, and quickly falling deeper into debt.

Fortunately for many, there is the option of payday loans,
which bridges the gap between paychecks, enabling one to
essentially borrow their own money before they normally
would have received it on their next payday. Most payday
loan lenders also do not check a person's credit report or
history during the approval process, which is beneficial
for those of us with either little or less than perfect
credit.

What Exactly is a Payday Loan?

Payday loans are short-term loans that, unlike those issued
by a traditional lender such as a bank, do not require
collateral, but instead use your next paycheck as a
guarantee for repayment. There are also those cash
advances, payday, or paycheck loans as they are sometimes
called, that are geared toward people with either no or bad
credit, making it possible to be approved for a small loan
that a bank, credit union, or other similar lender would
have otherwise denied.

The terms and conditions of payday loans will vary by
lender, but generally speaking, there are several different
criteria, such as meeting the minimum income requirements
or having a steady job, that must be met in order to be
approved. Borrowers must be at least 18, have a verifiable
form of steady employment, a valid bank account, and Social
Security number in the U.S. Most lenders will also require
that potential borrowers must have had the same job and
place of residence for a period of the past three months,
although others stipulate six months or more.

Of course, much like any type of loan, there are fees for
taking out a payday loan that should be fully understood
before you apply for approval to avoid any unpleasant
surprises. Interest and finance charges can often be
substantial, and are usually anywhere from 15 to 30 percent
on every hundred dollars borrowed.

Other important facts to know are the date the loan is due
to be completely repaid, and the amount and number of
payments. Although funds are usually debited
electronically, borrowers are usually required to write a
check, dated in advance for the full amount of the loan,
which will be cashed by the lender on the agreed upon
repayment date.

What are the Benefits of Payday Loans?

Some of the most attractive benefits of payday loans are
the ease of the application process and the time it takes
to actually receive the money. Thanks to advanced
technology, most all companies allow one to apply either
using the internet or the telephone, and learn if they've
been approved or denied in as little as 24 hours, most
usually within minutes. Notice can be sent through the
mail, email, or via the fax machine, which is helpful as
you'll want to keep a paper copy of the details of the loan
for your records.

Many lenders feature electronic transactions where the
funds are automatically transferred into the bank by the
end of the following business day. In fact, many companies
require that the borrower's bank account be capable of
electronic transactions in order for approval, as several
payday lenders require electronic repayment, which does
allow you to easily repay your loan without the need for
writing out another bill and sending a payment in twice a
month.

Extensions are another benefit of payday loans, which allow
you more time to repay the loan, although there may be
additional fees for the privilege. Extensions are usually
granted for two weeks, also the most common length of a pay
period, but some loans are for four weeks to begin with,
without the need for an extension, or the added fees.

If your credit history is less than desirable, another
bonus of payday loans is that there are no embarrassing
financial or personal questions to answer, as well as no
involved forms to complete. But, by making timely payments
and keeping your account in good standing, you'll
eventually be able to improve your credit in general, and
be able to borrow more money as you continue prove your
credit worthiness to lenders.

Using payday loans wisely and responsibly for paying bills,
taking care of emergencies, avoiding steep late fees, or
for keeping an important account in arrears will allow you
to protect your credit rating, and meet your financial
obligations should the need ever arise.

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For more information please visit
http://www.paydayloans-online.co.uk/