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.
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.
If you need of urgent cash then you should take option of 30 Day Loans available online. These loans are heavily available online for the benefits of numerous people living in US. Here, we arranged these loans in order to help many borrowers. With few clicks away of mouse, you can take option of these loans and borrow instant money. The mode of applying loan is easy as compared with the past. To apply these loans, you will have to apply loan by filling up loan application form with your full details such as name, gender, age and bank account etc. The lending companies are also offered these loans with instant approval.
Once you have the approval, the sanctioned loan amount of $100 to $1500 is granted on the same day. 30 day loans is offered with short-term loan repayment duration. The availing loan amount is feasible to relieve all kinds of financial adversities. After you gain of fast cash, it is helpful to fight all kinds of financial expenses. According to your urgent cash requirements, you should pay attention to borrow money from lenders. You can also use the money to meet many financial issues like home renovation, credit card dues payment, travel expenses, repairing of computer and other utilities.
To be accessible to avail 30 Day Loans, you need to meet few terms and conditions which include- you must be a genuine citizen of US. You must attain above 18 years of age. You should be employed with monthly income of at least $1000. Lastly, you should have valid checking account in US. By meeting these criteria, it is feasible to apply loan and borrow urgent cash for up to $1500 bucks. As the name goes, this small loan is granted for only 1 month. With the loan amount, it is easy to meet unexpected credit problems.
To know about the low interest rates related to such kind of loan, you should check out from the internet to save hard-earned money. Without pledging collateral, it is easy to avail loan and borrow of fast cash in the choice of loan. Such collateral-free loan is heavily offered online for the benefits of many borrowers. Irrespective of good or bad credit people, lenders have offered these loans to serve millions of customers. Overall, it is a great financial advance to help many borrowers. So, never miss out to take this loan and meet cash emergencies!
Jon Kohli has been in the regular touch with the financial market. He keeps on advising people who want to have finance through loans. Get more quality information about 30 day loans online , 30 day payday loans visit
If you are seeking convenient access to money then you should apply for Quick payday loan no credit check. These are specially crafted loan instruments that can help you over a short term period. If you are facing a small financial trouble and need urgent cash then these loans are the best. You just need to fill an online form and the loan will be approved in less than 24 hours time and makes it possible for you to make all the payments.
Quick payday loan no credit check can be easily availed through the internet. It makes it possible for you to avail money without any hassle. You can get the money in your account and can use it from the comfort of your home. You will not find any difficulty in any way for availing the loan. The lender will not even ask you to fax any papers or any other documents for the loan.
You can find number of lenders over the internet, so you should be careful as to whom you decide to deal with. All these lenders have different offers so you should make comparison between the deals offered. Always take a stringent look at the terms and conditions for these loans. You may find it complicated so better be careful before getting in to any deal.
These loans are only available to the citizen of US. The applicant should be at least 18 years of age. He should be employed and should be getting a regular monthly paycheck of at least $1000. He should also have a valid checking account in his name. So if you are seeking a short term financial assistance and you satisfy all these criterions then you should apply for these loans without any hesitation.
Jon Kohli has been in the regular touch with the financial market. He keeps on advising people who want to have finance through loans. Get more quality information about quick payday loans, no fax payday loans , instant payday loans visit