What is a Payday Loan?
Payday Loans are known by a variety of names. Some of these names include Payday Advances, Cash advances, short-term loans, check loans, and deferred deposit loans. While there are many names for these types of loans, they all share the same purpose. Payday loans are intended to be convenient short-term loans for people who are in need of a little extra cash until their next payday. When an unexpected expense arises and you need some quick cash, a payday loan can help.
How does it work?
There are several different methods you can use to obtain a payday loan. The most common way is in person, at a financial service business that offers them. This method is the only way to get actual cash in your hand right away. Other types of Payday Loans, such as Online Payday Loans, Payday Loans by fax, or Payday loans by phone work by having the money deposited directly into your checking account upon approval of the loan.
How Much do Payday Loans Cost?
Nearly all payday loans cost between $10 and $30 for every $100 borrowed per two week peroid. A typical Payday Loan will cost $15-$30 for every $100, per two week period. (These rates may vary by lender) For instance:
Borrowing $100 for two weeks may cost you a total of $115
Borrowing $200 for two weeks may cost you a total of $230
Borrowing $250 for two weeks may cost you a total of $287.50
The actual fees charged will vary depending on the fees that your lender charges, as well as the amount of your loan. Extending your loan will increase the cost of your loan over time. Make sure you understand and agree to the terms of your loan before agreeing to accept the loan.
Payday Loans are not intended to be long-term loans, and should not be viewed that way. These loans are not a solution to extensive financial hardships. When used properly, Payday loans can be far less expensive than having an overdrawn checking account, a late bill, a late credit card or rent payment, or a reconnection fee for a utility, cable, or phone bill. If, however you do not plan to pay back the loan in a short peroid of time, a payday loan can grow to be a very expensive option.
You can apply online and get the cash deposited directly into your bank account, or search for a business in your area that issues payday loans if you prefer to apply in person.
Category: Payday loans