What are payday loans?
Payday loans are short-term loans
that are extended between two pay days. A payday loan is normally
provided for 14 days. The borrower, on acceptance of the loan
conditions, provides a check favoring the lender as security against the
loan. On the due date, the lender deposits this check to recover the
loan dues. The due date is generally the next pay day of the borrower.
No credit checks are conducted for granting payday loans. Therefore, the
FICO score of the borrower is irrelevant. It doesn’t matter whether the
borrower has a bad credit history, or has no credit history, or has
Qualifications for payday loans
To qualify for a payday loan, the borrower needs to fulfill all of the following conditions. There are no exceptions.
o You must be a US citizen.
o You must at least 18 years of age.
o You must be at a full time job currently and must be at this job for at least three months.
o You must either have an active checking account or a savings account.
o Your after tax salary should be at least $ 1,000 or you must have a fixed income of $800.
Cost of payday loans
loans carry a very high cost. Generally the lender fees for a $ 100
payday loan is anywhere between $15 and $25. It should be remembered
that this fee is for 14 days as the loan itself is extended for these
many days only. If one considers the cost on an annual percentage rate
(APR) basis, the average is 391%, which by any standard is exorbitant.
By law, it is mandatory for the lender to specify the APR to the
borrower. Many lenders do compare the cost of payday loan against other
forms of financing; but the common denominator of such a comparison is
that all of them are very expensive.
When to avail of payday loans?
loans should be availed only during emergencies. Considering the fact
that the cost of carrying a payday loan is very high, it should be a
resource of last resort. If one implements good budgeting techniques and
has a good financial plan, the need for borrowing by way of payday
loans can be minimized. Moreover, one must ensure that a payday loan is
paid on time. Payday loans should not be rolled over or extended as
within no time the borrower will find himself or herself in a debt trap
where money may have to be borrowed just to repay the interest.
Profile of a payday loan borrower
typical payday loan customer is between 25 and 40 years of age with an
annual income anywhere between $ 25,000 and $ 50,000.
o According to the US Census report of Year 2000, the results of the payday loan borrowers survey are:
22% of those surveyed hold a bachelor’s degree.
51% of those surveyed have a retirement savings plan.
In excess of two-thirds of those surveyed have a savings account.
More than two-thirds of those surveyed have an annual income of at least $ 25,555.
Why are Payday loans popular?
They are popular for a number of reasons such as:
o Credit checks are not required. The personal check that you make payable to the lender acts as security.
o Approval is quick. If all the necessary documents are submitted, your loan application maybe approved in minutes.
The paperwork involved is simple. Generally one or two
documents would suffice which explains the loan process and your
o The repayment process is without hassles.
The check submitted as security is encashed on the next payday by the
lender. You could extend the loan to subsequent paydays for a fee.
However this is very expensive.
o Easy availability.
Payday loans are particularly appropriate for emergency situations
provided the amount required is small and one is willing to bear the
high cost of the loan.
In summary, payday loans might be a viable
option if you need cash and need it fast. You still should be careful
who you are working with to obtain your loan. If you don’t need money
right away, there is probably a better solution for you.
A payday loan is perfect solution to meet your all sort of financial crunch. There are various loan providers available in market each providing different features. You can all the time access these features by just applying with any one of them.
These payday loans as compared to traditional loans are very easy to apply for. A consumer needs to just apply using an online application form. After filling the form loan provider will go through the credit history of the consumer. If the credit score is OK then the lender will transfer the money in the account in a matter of few hours. The advantage is that when you need cash at time only you can apply for it. So it has been termed as instant loan. So before applying one should take care to choose such a payday loan provider who does not require any document to be forwarded to them. This makes the process very fast and efficient. Also it is what instant cash means? The majority of payday lenders would need the consumer to complete a loan application form and you will ask the applicant to supply additional supporting information to support his application.
Though the interest rate charged by these lenders providers is high but it is very less if we compare with the quality of service they provide. Some lenders also provide installment method of loan repayment. In this method a consumer can repay the whole loan amount in small installments in a stretch of few months. This is very attractive for many consumers especially for those who are not economically very sound to pay the whole amount in time.
The major reason why the interest rate is high for such loans is that no collateral is required at the time of applying. Also, the repayment time is very less as compared to traditional long process loans. But before applying a consumer should make sure that sufficient funds are there with him so that he can repay the full loan amount in time or of possible even before that. If not the amount will increase so high that it will be another headache for the consumer.
As you now know very well that choosing the right company to provide you with loan is very important to give you full benefit of payday loans. Many factors should be taken into consideration before going with one. This will help the borrower even in the post loan session.
Presently a lot of people go with amount of personal credit card debt. The level of consumer credit card debt receives excessive they don’t have got approach to repay their debts inspite of mortgage loan. Ths issue with all the financial loan is time. Generally in case the financial institutions provide strain concerning debt next interval can be key element. In the event there is frequent mortgage it can be seen that xbox live in order to deliver many reports as well as that you follow certain laws; these take into account great deal of events. On this small conditions gets excellent fundamentally the query which comes planned you are able to acquire remedy in the debts. For anyone who is employing this kind a position you’ll be able to receive many functional solution inside the www.leopardloan.co.uk. Let’s use a simple chat across the procedure of payday cash advance inside of British isles.
If you’re searching for that check out this submit and then system that can help have to find out there just what exactly payday advance can be. That one of several most effective ways that will get cash quickly also it’s generally known as when mortgage. Well put together matter about the cash advance is you can get compensated quickly as well as vengeance on the anybody don’t have to keep just about any credit standing or another solution documents to your financial institution for this purpose loan from the bank. Inclusion of a few basic details may make the debt option within just small amount of moment. Need a glance for the management of the amount of money progress.
At this point take a peek on various moderate requirements while using payday loan UK combined with prerequisites usually are; will probably must the actual long lasting person involving Uk, secondly you must be 16 if not more when compared with Seventeen years previous, then you have to become a employee from a task or you must have month to month earnings from the some other supplier, lastly while using ask you should mail information of one’s manage, email Detection, number as well as which include these you additionally call for a checking account where your loan total the actual grow to be altered. These are the basic tiny rules to the cash advance in United kingdom.
Within you are searhing for payday loan uk and after that initially you’ll want to superior most of these thank you’s. Best benefit in this particular mortgage loan is when the approval plan of action is true it is possible to obtain the dollars within rather short time. The fact remains within following day time of the software for the financial loan you can get money the expenses. Online your finances making your financial troubles solution quickly.
Questions like What is a quick payday loan? and How quick a quick payday loan is? are just among the common questions bothering some of the loan customers in many parts of the world. Well, in the first place, a quick payday loan is considered as a small and short term loan that is only applicable for those short term cash management as well as those that are not intended for larger financial problems that most of the consumer credit counseling would typically resolve.
For many years, quick payday loans remain illegal in almost all states; however, as the states recognized the greater demands of people for faster means of borrowing money, quick payday loans are now accepted and acknowledged as legal in 36 states in the US. With this acknowledgement, plenty companies began to emerge allowing the people to obtain access to small and short term loans with an amount of about $500 with less hassle.
This phenomenon is even highly felt both on the physical world and even on the virtual world. Several companies are now operating online and offline and they are happy to lend you cash by means of a quick payday loan. A quick payday loan then allows you to borrow money from a certain loan company on the strength of your next pay check, at which point the funds are typically debited from your account, plus an additional fee. Aside from that, several requirements are set. For you to apply for a particular quick payday loan, you certainly need a personal identification, bank account, and proof of your full time employment, in which the last or recent pay stud will do. And there are some instances that further collateral like car’s registration or utility bill are needed.
Most people who apply for a quick payday loan are noted as those who are responding to an emergency financial deficit. So when your car has broken down or an unexpected bill has trapped you short, a quick payday loan is commonly the solution. The bottom line is therefore whatever the case may be, you need cash fast and can’t raise it in any other means. However, it is necessary to remember that a quick payday loan is a least prudent way of borrowing. There is a great possibility that with a quick payday loan, you will likely get much worse rates than with a standard bank loan or even a credit card.
Finally, quick payday loan does not necessarily imply a quick funding. The case certainly depends on where you apply, whether online or offline. Note that when you apply online, you can obtain the amount for within 24 hours; whereas if you apply for a quick payday loan in a certain company in person, then you should have the cash in your hand within just half a day.
Could you do with some extra cash and looking for a fast money solution? If you are, we can help. The answer to your quick cash needs could be one click away. It is a fairly new cash loan arrangement – don’t be worried if you haven’t heard of it yet.
The only resemblance that a payday cash advance shares with its conventional bank or family loan, is that all of them give you cash. The whole concept is totally different. A payday loan fits rightly for people who need some fast cash without any official procedure or many form filling, at just a click of a button.
An online payday advance is designed to meet any of your imperative cash needs, for which obtaining a regular loan is a very inconvenient process. People who live from one pay day to another often find themselves lacking of cash in the mid of the month. If you are one of those people, payday loan may be just right for you.
To us it makes no difference why you need the money. Whether your need is house repairs, car breakdown, an urgent need to change your kitchen or any other mid month money crisis. Whatever your need is , we are here to meet your needs and essentially to give you the money you need.
How it works:
We are a financial company that specializes in giving short term loans; we can get you a loan of up to 750 pounds that will be in your bank account in 24 hours or less. All are required to do is provide your name, age, work contact and some other financial details. This way you can get up to 750 pounds in 24 hours.
Furthermore, this process does not take any hassle, which means no long walks or bus rides and no endless stream of paper work to fill out for such a small advance. You can apply for the cash payday loan through a small web application form. You could get it approved and the cahs transferred to your bank account automatically within an hour or so on weekdays, before 15:00.
Repayment is made on your following payday. We all know that exceeding your authorized credit limit will cause high fines that you will need to pay. You can receive a cash loan which will cost you much less than going over your credit limit. The interest on the loan is relatively costly but when you realize that there are no setup overheads, no questions asked, the immediacy and short period of the loan (up to 30 days) the actual cost of credit may be just about right for your situation.
Technology has made it very convenient nowadays to do almost everything online. Getting a cash loan online is simpler than getting any other kind of loans. The whole process is automatic and requires no human interface, no need to ask for money just get it online now.