What are payday loans?
Payday loans (also known as cash advance loans) are short-term, high-interest loans used to generate immediate cash between wage payments. The customer presents photo identification and proof of income, usually previous pay stubs. He or she may write a post-dated personal check to the lender which includes the amount of the cash desired and an established fee. The lender then presents legal documentation which describes the exact terms of the loan, including annual interest rates, late fees and finance charges. Upon signing these documents, the customer receives cash. Ideally, the entire loan is paid in full whenever the customer’s next paycheck is issued. If not, the loan terms may be extended or ‘rolled over’. Many financial experts strongly discourage the practice of payday loans. Because the loans are very short-term, their APR (annual percentage rate) can reach upwards of 500%. If the entire amount owed is paid by the date of the personal check, payday loans are merely expensive b
If you need extra cash until payday, you may wish to consider applying for a payday loan online. A payday loan can be secured online without a credit check. Having a bad credit score will not disqualify you from getting a payday loan. You can use the funds for any purpose and the money can be deposited into your personal account the same day you apply. All you require is a checking account and a regular source of income. With both, you can get up to a thousand dollars or even more deposited directly into your personal checking account. A payday loan was conceptualized to fulfill short-term financial or personal needs and shouldn’t be used as a steady source of borrowing funds. The interest rates or fees charged for payday loans may be higher than the normal loan from your bank. This is the reason why it should only be used for emergency financial crises. Obtaining payday loans on a regular basis can cost one a lot of money especially if one decides to extend the payment date many times
