Get a Financial Helping Hand with a Payday Advance
Today, everyone could use a financial helping hand, and a payday advance, also referred to as a payday loan, can offer that assistance.
Whether your car has broken down or you are faced with an unexpected medical bill, a payday loan can help you get by financial until your next payday.
How to Get a Payday Loan
Many people might turn to their credit cards or banks when they are in need of a short-term loan, but what about those individuals who might not have the luxury of tapping into their credit cards or are unable to secure a loan from a bank? Where can these consumers turn when they are in need of short-term financial assistance?
The answer is a payday loan. Serving as a short-term loan option, payday loans provide immediate access to cash without the same hassles associated with obtaining other forms of loans. Typically, payday lenders do not need to run a credit check and there is significantly less paperwork involved.
The primary way in which payday loans are different from other types of loans is their repayment periods. Often significantly shorter than that of other loans, payday loan repayment periods are generally 14 to 31 days in length. The idea behind these short-term loans is the borrower should be able to repay the loan by his or her next payday.
While payday loans tend to be easier to obtain than other types of loans, the borrower does need to meet some qualifications in order to secure a payday loan. Generally, these qualifications include being 18 years or older, having a steady income via a job or a government program and having an active bank account.
Payday loan borrowers can acquire a payday loan from physical payday loans stores, in which they would need to provide an actual check for the amount of the loan plus any fee.
Borrowers also can secure payday loans via the Internet. When applying for online payday loans, borrowers normally only needs to complete a secure online form in order to have the loan directly deposited into their bank account.
Payday Loan Fees
While obtaining a payday loan can be quite simple, it is important to note that payday loan borrowers need to be very careful of the fees associated with payday loans.
The fact of the matter is, payday loan interest rates are much higher than those associated with other types of loans.
Payday loan APRs, or annual percentage rates, typically start around 400 percent. For example, if a borrower secured a payday loan for $425 and paid a 15 percent fee of $75 (15 percent of the total $500), the fee would equate to a 460 percent APR.
However, if the borrower does not repay the loan by the original due date, the payday lender will assess additional fees, which will cause the APR to increase rapidly.
Many of the issues surrounding payday loans today stem from borrowers who do not repay the loans by the original due date and then become trapped by mounting payday loan fees. For this reason, it is very important for payday loan borrowers to secure a payday loan only when they know for certain that they will be able to repay the loan when it is due.
