Wednesday, December 7, 2011

Payday Loan Facts

By Yvonne Brixey

A lot of people have already spent most of their money by the end of the month and realize that they are not going to make it to the next payday. Or for another example, people have budgeted their checking account perfectly for the month and then an emergency happens that will cost them money. Anything can happen, you can get in a car accident and have a huge medical bill to pay for. Or for instance, your car needs a new transmission that will be very costly and you just did not plan for it. You should always have some emergency money saved up for times like these, but in any situation, a payday loan is always an option if there is absolutely no other way to make it through.

An instant payday loan is a loan meant for only a short period of time, apposed to a mortgage loan drawn out over 30 years or a car loan set up for 5 years. There is usually a limit as to the amount of cash lenders will let you take out. The amount of money you can have a loan for can be from $100-$1,000. This will all depend on the amount of money you are paid monthly if yo are paid hourly or yearly if you are on a salary. The cash you are loaned will be deposited into your personal bank account within a day and sometimes even hours after you have filled out the application for the loan. The lenders will expect you to pay back the loan anywhere from 1-30 days depending on when you get paid usually. You are also expected to pay the loan back on time and include the interest fees in your payment.

Short term payday loans do not come free. Very high interest rates are placed on the loan and you will be responsible for paying that as well. Some lenders will only give you a percentage for the interest rate. It can be deceiving and seem low, but do the math and figure out how much money exactly you are going to have to pay back. Decide if the payday loan is worth the extra money you will owe.

If you have a bad credit score or history do not worry. Lenders do not even check your credit score in the application process for a payday loan. Anyone can get a cash advance as long as they have a steady income and a back account. Another requirement is that you of or are over the legal age of 18. If you are going to apply for a payday loan, you need to be prepared and have all the documents to prove the above requirements. Such as a payslip, personal identification, and proof of a bank account that is active.

There is another way to get a payday loan and that is on the internet. There are so many lender companies online that will get you a loan fast. It is very easy to do and you can apply from your own home. You must, however, read all the fine print. There will be nobody to ask questions to or explain the conditions so that you understand. It is up to you to read everything and make sure that you understand everything involved with your loan.

All You Need To Know About Payday Loans

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