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I Need A Small Cash Advance Until Payday: How Does A Payday Loan Work?

By Edited Jul 23, 2015 0 0

Get A Small Cash Advance To Pay Bills

Getting a loan in general, can be a very frustrating, confusing and time-consuming job. The application, verification, and the loan processing itself can create such a headache that it causes the applicant to shun the process entirely. Payday loans today however, go out of their way to make the lending process less time consuming and tiring. Then the concept of payday loan has evolved. As common as payday loans are today, there are still people who do not know what they are and how it can help them get the emergency cash they need, when they need it. Like most other lending medium, borrowing  money through a payday loan, although less strict, do still have some basic requirements.

 

So What is payday Loan Anyway?

A payday loan is a short-term high interest loan that you can borrow for up to 3 months. It is usually an amount you borrow from one paycheck to another to keep you above water until you are paid again.  There are different types of payday loans, for instance, the fixed rate payday loan or what is called the ten dollar payday loan,” is a loan that has a fixed interest of $10 for every $100 you borrow.  So therefore there is no surprise at the end of the loan terms, you know exactly how much you are going to pay and the lenders know exactly how much they are going to receive.  Other types of payday loans include the “no fax” payday loan, which is a payday loan that caters to those who do not have a job or a steady source of income. Depending on your need, you can pretty much find a payday loan to help you through any situation.

Minimum verification is needed and the money to be transferred directly to your bank account. The interest may be exorbitant and unrealistic in some instances, but for those in desperate need of instant cash or emergency cash it can be a God send. Some payday lenders or emergency cash lenders can be classified as legal loan sharks simply because of ridiculous amount of interest they charge. At the same time, you do not have to deal with them, because there are other options to getting quick emergency cash when you need it.  Payday loans can be obtained in almost every provinces of US, Canada, UK and Australia. You can see many payday shop or retail stores right in your neighborhood, usually displaying a sign that says something like “Get Cash Now Until Payday.” Besides, like all other products and services, online resources for payday loans have increased dramatically since many people shop online for what they need, including a short-term payday loan.

 

The Small Cash Advance Payday Loan Limit

Payday loans, other than the “ten dollar payday loan” or “fixed interest payday loan” have a variable interest rate and in different states the ceiling (or highest amount you can borrow) is different.

Each state has its own requirements when governing payday loans.  Arizona, for example, made the practice of offering payday loan illegal to its citizens. You can get an idea of how different payday loan practices are different in each state just by searching the internet. For instance, the maximum limit in California state is  $300, for the maximum period of 31 days and an interest rate of 15 %, while in Illinois the limit is different, less then $1000 or 25 % of the gross monthly income, whichever is less will apply. For a payday loan in Illinois, time limit is in between 13-45 days and the interest rate is 15.5%.  Apart from USA, the concept is widely popular in UK as well as Canada and in Australia. They also have their own practices and regulations when dealing in the lending and borrowing of payday loans.

Here is a “General” payday Loan Requirement

This is a general sample of payday loan requirements in many states within the United States.

  1. The person concerned should have a gross monthly income from $ 500 to $ 2000 or more.
  2. The payment schedule should be regular, be it weekly, bi weekly or monthly.
  3. The person concerned should be more then 18 years of age and should have a permanent residential proof
  4. The applicant should have a regular source of income. This means anything you get on a regular basis, which could include the following: Paycheck, child support payments, welfare payments, annuity settlement, and alimony.
  5. Applicants should have a checking account that accepts direct deposit

In vying for customers, some payday loan companies may be less strict with their requirements and it is possible for you to get a payday loan even without a job or a regular source of income.  As stated above, those are called “no fax payday loans.”

 

What Are The Other Benefits of Small Cash Advance Payday Loans?

There are so many other benefits for the Payday loans including no credit check in most of the cases. Normally a loan application needs to be verified in a proper manner. Usually, loan companies require your social security number and with that number, they can run your credit. With some payday loan companies, they do not do that just because they know most people come to them because they have bad credit and need money quickly. Most of the companies in this segment offer the payday loan without a credit check. If you find one who wants to run your credit, you can easily refuse to deal with that lender and find another creditor or payday lender who will not run your credit and give you the quick cash you need based on your income.

 

The Small Cash Advance Payday Loan Lenders

There are host of companies available on the internet who would just love you to ask them for a payday loan. The payday lending industry is heavily competitive and you have many lenders vying for your attention and your business.  If you cannot get a loan in your local neighborhood, then you can surely get a loan from one of the thousands of online payday loan lenders. You can go through a company like Payday Panda that sends your information through to 60 payday lenders and matches you up with the right type of payday lender. There are also other payday companies online such as—100day loans, Net loan USA, Pay Day One, Cash net USA and so on. These sites are rated to be secure and problem free and can be accessed online. Any one intending to get a Payday loan should check through different sites to get the best deal. Between online payday loan lenders and those payday lenders in your community, you can get the quick cash you need to help you out of a jam before the next paycheck.  

 

The Payday Loan Checklist

Before you apply for a payday loan, there are certain things that you should think about. Consider it a checklist of sorts.

  1. You should have a way of paying back the loan. Set aside money from your regular pay to make sure you can pay the loan back.  You do not want to burn the hand that is helping you.
  2. Make sure you investigate the lender before you give out your personal information.  Contact the BBB in your state or the Attorney General or even just do a simple Internet search on the lender to see if they are complaints.  This one simple step can save you time and energy and perhaps much more than that. Make sure the lender has a physical address and a phone number where they can be reached all the time.
  3. Make sure the Interest rate or APR is something that you can handle.
  4. Make sure the company has proper licenses etc to conduct the business in your state.
  5. Check WHOIS registration to learn more about the company.
  6. The page encryption also is another important matter to think about. It should have the SSL encryption where the site starts with “htpps”. This is VERY important when dealing with money. Go to online-payday-loans.org to check on different payday loan lenders to see what kind of lenders they are. 

 

 

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