Payday Loans, A Viable Option?

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 declared bankruptcy.

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

Payday 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?

Payday 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

o A 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.

o The paperwork involved is simple. Generally one or two documents would suffice which explains the loan process and your obligations.

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.

Military Payday Loans

What is a payday loan? This is a small short-term loan for employees who are categorically perceived as those belonging to the lower socio-demographic class because they have no other financial options except to apply for a cash advance payday loan. The borrowers apply payday loans to bridge the cash flow gap between their paydays. Or sometimes, advanced cash payday loan usually provides cash for occurrences of emergencies in time of cash flow problem. This type of loan is typically handed out to the borrower in the form of cash and secured only of the borrower's postdated check which may amount to the original loan principal and as well as the accrued interest. Payment is processed through in the maturity date by a traditional check or through electronic withdrawal from the client's checking account. A military payday loan is one very common type everywhere in the world.

Military payday loans are intended specifically for the military men and women. No matter what is the rank or grade, those who served the armed forces are eligible for the application of a military payday loan. If a military man needs cash but payday is still far, he can apply for an instant military payday loan. An advantage of military payday loans is that application can be obtained wherever a military man may be. Many countries have already contracted online services to make payday loan services more accessible. So that whenever a military man resides, he can go online and fill out necessary forms and then send the application. If approved, cash advance may be received through an electronic funds transfer. Instant military payday loans are quick and easy because funds were provided specially for the military men and women's emergency financial needs. Online application is secured and protected so transactions are safe and kept in privacy.

Another advantage of payday loans for military is its lower rates than other types of cash advance loans. Also, the military are also given option for choosing repayment schedule. If they cannot afford to pay it with one payday check, they can always pay back the loan with the next paychecks. Military loan companies are everywhere. Most of them understand the needs of the military man/woman and families. They knew how can a military man or woman affords so they these military payday loan companies how to equate the interests for their cash advance loans. Other military loan companies offer kind of loans that will aid servicemen to acquire new home, cars, or other things that might require higher expense. These companies offer easy and affordable mortgage plans. Basically, instant payday loans will afford military men and families an easier and keep finances in order.

Application for an instant military loan is also offered through phone line and is directly assisted with military loan consultant. Most reputable and reliable military loan companies are available for the customers. Military cash loans are not only available for active military men. There are also military corporate consumers loans companies who offer this same service to the retired military men. Retired armed forces men normally want to apply for a fast cash loan when circumstances of sudden need of large amount of money is needed like unexpected bills. Like the aforementioned type of instant cash payday loans, retired military loans also do not discriminate the ranks and grades of the former servicemen. As long as they have served the country and meet other related requirements, these men are also eligible for an application. And, likewise, best military cash loans provide lower interest rates than any other type of cash lending companies.

A military profession is a job that has stable and security guarantees. They are typically given grants and greater benefits than other employee types but one disadvantage is that they are not well compensated much like other working class. That's why loan companies have sprouted all over the world to answer financial difficulties a military man usually encounters. To alleviate these men from difficulties, they only need to provide lending institution the necessary papers like military ETS, personal information, and of course checking account number. After approval, cash would be in their hands to improve their financial condition.

Payday Loans - The Legal Loan Sharking Industry

Laws have been created to protect people against "Loan Shark" practices in which short-term loans are given out at excessive interest rates. There is an industry that has come of age the last couple of years that has circumvented these laws. Enter the Payday loan industry.

Payday loans is a some-what new multi-billion dollar industry in which people borrow money to tithe them over until their next payday. These loans also go by the names cash advance loans and paycheck loans. They prey on the lower class that find themselves short of money before a payday.

The one thing to consider when looking into a payday loan is the APR or Annual Percentage Rate that these loans carry. At first glance, you may think paying $240.00 for a loan of $200.00 for two weeks is ok. The A.P.R of this loan comes to a whopping 520%. That is the amount this loan would cost if played over a years time. Compare this with a high interest credit card of 29%. When you see it compared to these numbers, you can see they are not the bargain you first thought it was.

A representative from a payday loan company has agreed to be interviewed for this article on the condition his identity and that of his company be anonymous.

I asked him, how can they can justify such enormous interest charges. His reply was "Because we can. There are loopholes out there that allow us to do this. This is a high risk loan for most cases so we need to charge enough to cover bad loans and to make a profit."

When asked about if payday loans are ever a good idea, his response was "Sure. For example if you will be late on a credit card payment of $70.00 and will be charged a late fee of $30.00 then the APR of the payday loan justifies getting one. You will save points if you get a payday loan and not pay the higher interest rate of the late fee."

When you should get a payday loan:

There are times when payday loans are justified as discussed above. The primary example when your late fees are more expensive than the late fees paid to your creditors.

Another non-tangible justification is when you can avoid getting reported for a late payment. This can be far more expensive than any payday loan fee in that it could affect the cost you pay for future loans. This is especially true if it's your mortgage or car payments.

Yet another reason to get a payday loan is that you determine that the cost is worth it to you personally. If you are headed for the long awaited vacation and could use a few extra bucks to enjoy and can afford the fees then you should look into this.

A final thought on when you should get a payday loan is if you need that cash and it's free. That's right free. There are a many sites out there that charge ZERO interest to all first-time customers. One such site can be found at Low Cost Payday Loans.

What to look for when getting a payday loan:

The first thing to look for is the APR. Federal law has made it so that every lender must disclose the cost of any money borrow through a Truth in Lending Disclosure. This must break down the cost by APR (Annual Percentage Rate). This is the first thing to compare loans by.

Another thing to look for is the length of the term. If two companies charge the same rate for every hundred dollars borrowed but company A has a term of up to four weeks and company B has a term of two weeks, then go for Company A and take advantage of the extra four weeks. The APR of Company A is half of Company B. The reason this differs from the first item is that sometimes they base APR on a fixed amount of time (two-three weeks usually). When you read the fine print that the fee charge is fixed and may allow you to pay it back in a longer term such as four weeks.

The bottom line:

Do your homework when getting a payday loan and look for free to low cost payday loans if possible. The money you save can be substantial. Look for lower cost payday loans and No Fax Payday Loans. These faxless payday loans allow you to apply without needing to submit documentation via fax.

The Principle of Payday Loan - Learn How to Get Fast Cash in 45 Minutes

Do you know that payday loan is not for every body? Do you know that payday loan is initiated to help people in urgent need for cash and not for luxury? Do you know that payday advance only gives out maximum of $1500 dollars? Do you know that payday advance is a short term loan with a loan period of 15 to 31 days? Do you know that only people above 18 years can apply for cash advance and get approved? Do you know that only people with a checking or a savings account can apply and get approval for payday loan? Do you know that payday loan is a high interest loan? Do you know that payday lenders will not approve your application if you apply with more than one company?

If you have know the above fundamentals of cash advance, all you need to do to get fax less payday loan to get easy access to cash is to apply them to your application and get the cash you need as fast as possible. You can get cash transferred to your account in the next 1 hour if you follow the above principles.

First, you must know that payday loan is not for every body and you must work your self fit for the loan service before you apply, if you don't do that, your application will be decline. So if you need fax less payday loan, you need to make sure you have all it takes to apply and get approval before you venture into applying for fax less payday loan.

Secondly, you need to know that payday loan is initiated to help people in urgent need for cash and not for luxury. The initiation of fax less payday loan makes it easier for borrowers to get fast cash to fix urgent financial needs. If you want to apply for payday loan, you have to make sure that the need for the cash is worth it before you apply for the loan package because payday loan is capable of indebting you if you can not pay back on the stipulated date. You also need to know that payday lenders are aiming at low income earners to make more profit because the longer you hold on to the loaned amount, the more money they make.

Thirdly, if you need fast cash and you want to apply for fax less payday advance, you need to apply with a company that will credit your account without credit check and without fax, but you also need to know that payday loan only gives out $1500 dollars at the moment. If you need any amount more than $1500, you have to look for another form of loan service.

Fourthly, you need to know that payday loan is a short term loan, the loan package only last a period of 15 to 31 days. This loan service is giving in advance to your pay check. Your pay day is the repayment date. Most times, you will pay back hassles free as lender will withdraw the loaned and amount and the interest directly from your bank after your payday.

Fifth point, you need to know that only people with a checking or a saving account are eligible for the loan package because the loaned amount will be transferred directly to your account and the lenders will also withdraw the loaned amount and the interest from your account after your payday. Before you can get approval for this loan service, you account must be at least 3 to 6 month old and it must have a credible financial history.

Sixth point, before you can apply for this loan service, you must be at least 18 years and above. If you are not up to 18 years, your application will be decline by lenders. So before you can apply for fax less payday advance service, you must be at least 18 years.

Seventh point, you need to know that fax less payday advance is a high interest loan and if you want to apply for this loan service you must be careful so that you don't pay exorbitant rate during repayment. If you want to apply for fax less payday advance, you need to apply with the company that will give you the most moderate interest rate package before you apply for their service. Payday advance is very enticing due to the quick cash service attached to the loan service, but if you want fax less payday loan service to get quick cash, you must also consider the interest package on the loaned amount before you apply for the loan service.

Eighth point, you need to know that payday lender will not approve your application if you apply with more than one company at the same time. If you want to apply foe fax less payday loan for easy approval, you need to avoid multiple applications with more than one company. If you apply with more than one company at a time, your application will be decline in both companies.

Payday Loan FAQs

Are you interested in taking out a Payday Loan, but worried you don't have all of the information you need? Make an informed decision by reviewing the frequently asked questions below. If you're still having trouble you might try researching the information on a Payday Loan Review website or your chosen lender's website!

Q: What is a Payday Loan?

A: A Payday Loan or Cash Advancement, as is it sometimes referred to, is the fiscal sum issued to you by a lender. Borrowers typically look to obtain Payday Loans between paychecks in order to fund emergency expenses. Many lenders expect the loan to be repaid after the borrower receives his or her next paycheck.

Q: Am I eligible?

A: Qualifying for a Payday Loan has never been easier! Bankruptcy, bad credit, no credit, bounced checks and other credit hassles won't prevent you from getting the financial aid you need, when you need it. That being said, you are required to be eighteen years of age, a registered citizen in the country you wish to borrow and you must earn a combined income of $750/month.

Q: How much money am I eligible to receive?

A: The fiscal amount in which you are eligible to receive from a Payday Loan depends on several different factors. If you're interested in determining exactly how much you are eligible to receive, simply contact the lender that interests you. The lender will promptly contact you with a fiscal value.

Q: How much will a Payday Loan cost?

A: Payday Loan fees depend on a number of different variables. The lender you've selected and your loan repayment history are two common factors. The information you provide on your application will also help determine your Payday Loan fee. Many potential borrowers are taken back by the mention of fees. Remember, Payday Loan fees are of much less value than overdraft fees, bounced check charges and taxes.

Q: How long will it take to receive my money?

A: Once you have applied, your application will be sent directly to the lender you've selected. The money you've requested will be wired to your bank account within twenty-four hours.

Q: How do I repay my Payday Loan?

A: Payday Loans are often repaid upon the receipt of your next paycheck. If you are unable to repay your loan on time your loan will be automatically renewed. When you are able to repay your loan in full, simply contact your lender so that they may deduct the costs directly from your bank account.

Q: Can I apply for a Payday Loan with a Savings Account?

A: Of course you can! Many Payday Loan providers accommodate both Checking and Savings Accounts.

Q: Can I apply for a Payday Loan if I am self-employed?

A: Of course you can! Most applications do not require employment verification.

Q: What is the maximum amount I can receive from a Payday Loan?

A: $1,500 is the maximum amount you can receive from a Payday Loan.

Q: Will I be required to fax any documents? I don't have a Fax!

A: Some payday loan companies online, do not require you to fax anything. Check out our article about No Fax Payday Loans.

Q: Will getting a payday loan affect my credit score?

A: If you get a payday loan that checks your credit score, your credit score might be affected by this.

Q: Are there any states in which I cannot receive a Payday Loan?

A: No, all fifty states allow Payday Loans.

How to Get Payday Loans Online - Get a Loan Right Now!

The ability to obtain instant payday loans online has become quite popular. It is quite easy to fill out the online form. Normally, it takes less than an hour for approval and approval is gained without a credit check. It is important to check each payday loans company for verification with the Better Business Bureau in one's local area. If the company one has chosen is not registered, it is a good idea to continue his or her search till he or she has found a registered company in good standing.

Reputable companies understand that there is a need for financial services for those who cannot borrow traditional loans. However, many individuals seek out payday loans online in Ontario without first checking the background of the lending company. It is important to do a thorough search before settling on the company with which to do business.

The concept of payday loans is that an individual can obtain much-needed cash deposited instantly into his or her bank account that will enter repayment on his or her next payday. The interest rates will rise as the length of time till repayment is extended, that is why it is important to pay back these short-term loans as soon as possible. The application process is very simple and streamlined and states all terms and conditions in plain English.

For those individuals that do not know what a cash advance loan is, it is a short-term loan that is also known as a cash advance loan. These are great ways to borrow for those that cannot or do not want to borrow with a traditional lender, such as a bank or credit union. There are higher interest rates due to the convenience of this type of loan and a shorter repayment period. The term of the loan is normally seven to twenty-one days after receiving the funds.

If an individual has had credit problems in the past, there is also a payday loan just for them. For those who simply need help arranging their finances, credit counseling services could be just what they need.

Applying for payday loans online has never been simpler, with shorter forms and more online lenders to choose from. If one believes that this may be the right road for him or her to take, simply research the company before giving out any personal information.

The world is experiencing economic hardship right now. No jobs, housing market at a standstill and no end in sight makes it difficult to hold out hope for the future. North America seems to be worse off for those that live there, even is feeling the strain. With no end in sight to the economic plight, where does one go for extra funds when they are needed? For citizens, extra cash for unexpected expenditures comes in the form of payday loans online.

When a person's paycheck is weeks away, but car repairs or emergency medical treatment is needed, having cash on hand really helps. If a person does not have extra cash for such items, then it can be disastrous. That is when a payday loan can pull a person through a rough time.

All a person has to do is go online and provide information like, citizenship, employment, checking account with bank, drivers' license, and contact numbers. Once the information is verified, a person can have a loan in a matter of hours.

There are no hidden fees to worry about once a person accepts the loan. That can be frustrating to think that everything is all taken care of and then are slammed with another fee. Payday loans online is up front about fees when a person applies so there are no surprises later.

Some establishments may charge processing fees, not so with a cash advance loan. Applying is free and takes only a few minutes of a person's time in the comfort of his or her home.

A person does not have to worry that unscrupulous people may get a hold of his or her personal information either. Payday loans online keeps a person's information strictly confidential. They understand a person's nervousness about giving out personal information and make sure it is much safeguarded.

One of the best parts about applying online is how simple and fast the approval process works. Once approved, the money is wired directly to a person's account and ready to be used. Repayment works the same way, it is electronically deducted from a person's account; no muss, no fuss. Payday loans online makes getting needed extra cash hassle-free. When a person needs cash, he or she should apply online with a payday loan facility in your town.

It used to be quite difficult to obtain a payday loan, but now, with the advent of the internet and payday loans, this is something that more and more people are checking into. This is not to say that more are experiencing financial troubles, even with the global economic crisis; it simply means that now that these loans are easier to obtain, more people are qualified to receive them.

Experts are saying that more individuals than ever before are choosing payday loans for the ease of the application process. This was not so even just a few years ago because of the length of time it took for approval, and many times, properly qualified people were still turned down. Also, back then, your credit had a lot to do with your acceptance, as well; but, all that has changed, and no longer do payday loan centers require a background or credit check.

Also, thanks to the internet's ability to put people in instant contact with various businesses, it is easier than ever before to obtain payday loans. In fact, the entire application procedure has been lessened to just a couple of hours. Imagine, in a little over two hours, you could have the money you need in hand. This is why obtaining payday loans online has become the new way to obtain the funding needed for your emergency.

Of course, there are still the skeptics out there who believe that payday loans may not be for them. Rightly so, as it does sound as if the lending agencies are just handing out free money; however, there are qualifications that one still has to possess and it is certainly not free money. Not only must it be paid back in a much shorter time frame than a traditional loan, but it also has loan fees attached to it for the right to borrow the money. These loans are quite efficient for those finding themselves in a financial debacle, but they do come with a certain price.

The greatest thing about payday loans is the fact that you do not have to suffer through a financial setback any longer. You do not have to look at life as though you need to worry what will happen with your next monetary emergency. Payday loans can help you get rid of your financial problems efficiently.