How it Works
Short term loans, generally offered by various cash advance stores for a period of 2 weeks for a one-time fee and under a pretty high interest rate are called payday loans. This kind of service has gained its recognition for a period of recent 15 years and is nowadays a very popular as well as convenient.
The common process of giving such a loan is as follows: a person fills in the application and gets the approval. Then, he or she sings a check for the requested amount with a fee included. A borrower should be able to repay in due time but, in case it turns out difficult, a borrower may pay the fee and postpone the repayment for another fortnight. However, in this case a fee is added one more time to the initial loan sum. Lawmakers do not favor this sort of loans as they have got interest rates that are rocking.
However, consumers have got a different point of view. Despite the fees and high interest rates, payday loans are a very welcome service among many. In terms of easiness and convenience they resemble a service of a taxi - something that is too expensive for everyday use but extremely convenient in certain frequently urgent and generally short-term situations.
Payday loans represent real help for people who look for financial support. These loans are beneficial as they provide easy and prompt access to cash without much paperwork and hassle. In case of emergency it is a real solution and a perfect option for people with imperfect credit history.
Payday loans are generally given for a period of 14-30 days. One of the main advantages of such loans is that they do not require any credit check and, therefore, your credit history does not affect anyway the approval process. Not only this feature makes payday loans a speedy service but it also makes them available for any people who may need financial help.
One more essential advantage of payday loans is that there is no need to go to different banks and fill in endless documents. Payday loans can be applied online and without much trouble.
In order to get the loan in the amount required a person should comply with certain requirements. Generally, a borrower should be a U.S. citizen over 18 years of age, permanently employed for a period of at least 3 months, have got an income of at least $1000 and a bank account.
Generally, most of the lending companies are able to offer you loans in amounts ranging from $100 to $1500 but it can be more depending on the situation and your income. The money is transferred to the bank account within 24 hours after the application is approved.
Payday loans are considered unsecured as long as there is no need to pledge collateral in order to get such a loan. However, this also makes them pretty expensive in terms of fees and interest rates. That is why it is recommended to apply for them in emergency situations such as unexpected medical or repair bills or any other types of payments that cannot be delayed. Otherwise, more frequent use of payday loans can be fraught with even bigger financial problems.
Payday loans are a great solution to urgent financial problems. They are easy to apply, fast to get and are available to any person no matter what is the credit history state.
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