Millions of advertisements are painted across many venues around the nation that promote the use of payday loans. Need a Cash Advance, Americash, Reliance Payday, One Hour Cash Advance, and USA Easy Cash are among the most popular payday loan companies in the market today. These companies focus on providing payday cash advances to individuals who find themselves in need of quick cash. They pride themselves in creating it easy for anyone to approve, and getting that approval in very little time. Payday loans are simple to understand. In this article, we will explain what payday loans are, the basics of payday cash advances, as well as how these short term loans compare to other types of personal loans.
When a person experiences a financial emergency in which they must acquire cash in between paydays, they can apply for a short term loan that is referred to as a “payday loan”, “fast cash loan”, or a “bad credit loan”. When applying for these types of short term loans, an individual must provide just a few key items of interest to the advancing company. These items include identification, proof of a checking and/or savings account, and verification of monthly income. Once this information is provided, the verification process begins. The loan company will conduct research on the information that you have provided to ensure it is accurate, once this is established, you can be instantly approved.
Once you are approved for a payday loan, you will be told the amount that you qualify for. Furthermore, you will be issued the terms and conditions of the loan. Normally, you can qualify for any amount between $100.00 and $2500.00. Once you are approved, there will be a certain amount of interest added to your loan as well. This means, for every $100.00 that you borrow, you will be required to pay a certain amount. These amounts can range from as low as $5.00 to $50.00 per $100.00 borrowed. If you fail to repay the payday loan by the maturity date of the short term loan, you will be required to possibly pay additional fees and higher interest rate fees.
Once you have been approved, the money from your payday loan is then issued to you by direct deposit or by a money order from the company. The maturity date of your short term personal loan will usually be on your next payday. Many companies allow individuals two paydays before the maturity date. You will be required to provide your banking information to the payday cash advance company. When the loan becomes due, the finance company will immediately withdraw the funds from your bank account. If the funds are not available, then you will owe the finance company a fee for a “bounced” check, as well as any fees as imposed by your financial institution for any such occurrence.
There are many differences between a payday loan and a more conventional loan. The main difference is that a payday cash advance does not require the use of a credit report to determine approval. The next difference is that a payday loan is short term – usually only one to two weeks – where conventional loans have a longer amount of time in which the loan can be approved. With a cash advance on your payday, you will generally pay a higher rate of interest than you would with other types of personal loans.
For tips about repayment, check out our page about Payday Loan Settlement so you can make sure you are following the rules and not getting into financial trouble.