Payday Loans - An Overview

Temporary financial crisis strikes each one of us at some point or the other. Since payday loans offer quick solutions to tide over such situations, they are gaining rapid popularity. Recent studies indicate that the number of customers taking payday loans and payday lending companies has been increasing significantly.

Payday loans (also called Cash Advance Loans, Paycheck Loans, Check Loans, and Payroll Advance Loans) refer to short-term loans, typically with 1-2 weeks of term period. Payday loans are repaid after the borrower gets his/her paycheck for the particular month. If you fail to repay the loan on schedule, you can rollover the loan amount by paying extra fees to the lender; in this case the interest component payable by you will include the rollover period. Hence, payday loan can be termed as ‘Loan Sharking.’

If you are taking a payday loan for the first time, referring to this check-list can help you strike a great deal:

Why Take Payday Loans: Payday loans are emergency cash solutions, especially designed to meet last-minute cash crunch. You can use payday loans to avoid bouncing of checks, bank overdrafts, or to pay pending bills.

Who Can Get Payday Loans: Any adult (18 years) who is a US citizen, earns a steady income of not less than $1000 per month, and has a checking account in bank can get payday loans.

What is the Best Time to Apply for Payday Loans: It is best if you apply for a payday loan between Monday to Thursday because you will be able to get your payday loan on the next working day.

How Much Does Payday Loans Cost: Usually, a payday loans company charges $15 to $30 per $100 borrowed. So, if you borrow $100, you will have to pay $115 to $130 on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.

Maximum Limit of Payday Loans: If you are taking a Payday Loan for the first time, you may only get up to $500. However, after you duly repay your first loan, you can avail more than $500 when on revisiting the lending company.

Payday loans are easy solutions in the moments of cash crunch, but come at exorbitant fees. Therefore, a borrower must choose a company that does not charge its customers fees for the first transaction. Check parameters such as weekly fees, minimum loan tenure, and hidden fees, if any, related to your payday loans. Get the cash deposited into your account just before the day you need it to save interest costs that are as high as 400%-500%. Most importantly, do not borrow anything more than your requirement. For more information on payday loans, you can visit [].