A-Z on Payday Loans
September 15, 2011
On a day-to-day basis, people require money regardless if youâ€™re wealthy, an average Joe or absolutely broke!
However, there do come times when you open your wallet, peer into your piggybank, check your online bank account or even attempt to make a transaction at the ATM- and you realize, youâ€™re out of cashâ€¦ These can be daunting times for some especially when you really are strapped for money and immediately need to pay something such as a phone bill or a credit card statement.
In such circumstances, Payday loans may just be the solution to all your problems. Having been recently introduced on to the money market, a lot of people fail to understand what Payday loans are really about and this is when things can become messy because people misuse such services and end up in debt.
Payday loans are essentially short-term loans granted to borrowers who are eligible. Eligibility is dependent on certain factors such as employment status, income and ability to pay back the loaned money with accrued interest once you have been paid from your employer.
They are relatively easy to apply for as applications can be done online through secure websites or even over the phone or in person at branches.
If you are a successful applicant, you are approved the loan within a minimum of 24 hours and the money is immediately transferred to your selected bank account.
Payday loans tend to be offered by payday loan stores, pawn shops and check cashers. They can even be marketed on toll-free numbers and online.
When applying for a Payday loan, all you need is a relatively stable bank account, a steady source of income from which you will repay the loan and proof of identity. Most lenders who offer Payday loans may not conduct a credit history check on those individuals who apply however in some instances they may for the security of their business.
Payday loans can vary in size from anywhere little as $100 to as high as $1000. The general period for the loan is approximately two weeks and shorter-term loans are usually known to have higher APRs.
The one thing most people tend to forget about Payday loans is that they can be just as troublesome as any other loan in regards to racking up debt and being trapped. This is primarily because some borrowers can get caught in a borrowing cycle because applying for payday loans is that easy that approval is instant and lets face it, who doesnâ€™t love instant cash and who wouldnâ€™t want to take advantage of such a service. Some individuals find themselves caught in the vicious cycle whereby they become apart of the average statistic of borrowers applying for about 8-13 loans per year at a single lender!
So it is important at the end of the day that you adequately research the facts about Payday loans before applying for one.