Payday loans are also referred to as cash advance financial loans, check advance loans, post-dated check loans, or deferred deposit loans. Which pretty much mean the same thing.
In the case of online companies, you apply for a loan through the Internet. In case you; re approved, the money is wired over night into your checking bank account. The loan is usually for one to four weeks — until your next short term.
When the loan is due, the business takes the amount you owe — plus a payment — from your bank account. You can roll over the loan to the next payday, but you have to pay another fee.
But there are some facts you need to be conscious of.
You won; t see these in the ads for payday loans. And you could have to search the fine print on the company websites to find them. I call them the Five Hard Facts About Payday Loans.
Hard Truth #1:
FastPayUSA Approval Code A short term loan is not going to solve all your problems
Remember, it; h just a short-term loan. Plus the quicker you can pay it back, the better. Don; t keep rolling within the loan and racking up the fees.
But you; re the. You can decide for yourself how you; ll use the loan money and if you can pay it back when you get your next paycheck.
Tough Truth #2:
You can; t get an unlimited amount of money
Wear; t anticipate to get countless numbers of dollars with a guaranteed payday loan. Most loans you get will be about $100 to $500 — enough to get most people through a crisis until the next payday.
Some payday loan companies advertise that you can get $1, 000. True, but don; t anticipate to get that much the first time you do business with them. Once you become a regular customer, they may boost the amount you can borrow — as long as you; re making enough in your job.
Which bring us to …
Hard Truth #3:
Not everyone can get approved
Here; s the offer. They; re called short term loans because they; lso are for those who have careers and get a regular salary. If you don; capital t have a job — or other income like Social Security — you; re not going to get one of these loans.
Also, your job has to pay you enough. If you earn about $1, 000 to $1, 200 per 30 days, you should be alright.
But these companies have other requirements you have to meet, and for good reason. They don; t know you, they; empieza never met you, so why are they trusting you with their money? Because you prove you can pay the loan back.
So you; lmost all need to exhibit them you have a job or other monthly income … you; ll need a checking account … you need to live somewhere and have a phone number … and you can; t be a complete deadbeat on the run from the legislation.
Sound reasonable? Sure.
In addition to don; t worry too much about credit problems. They care more about your current ability to pay back a loan than about your past troubles with credit. That; s a relief!
Hard Reality #4:
These loans put on; t come cheap
Inside general, you; ll pay up to $30 for every $100 you borrow.
Today, some pencil-pushers think that; s like paying an twelve-monthly percentage rate of 390% or 780% or some such number. These people; ll say it; t outrageous when you compare it to secure a mortgage at 6% per year, or paying 18% on your credit card charges.
Okay, but you; re not taking out the loan for a year — merely a few weeks at most. Thus look at the expense of taking out the money as a service charge. You alone can decide if it; s worth it to you.
Want an example?
Let; s say you have three bills due on Wednesday, however, you wear; t get paid until Friday. If you pay your bills late, you get hit with late charges. If you write the checks anyway, and there; s inadequate money in your account, the checks will bounce and you; ll have to pay fees for that.
Bounce one check and it might cost you $60. Bounce three checks and it; s $180!
Right now compare that with paying, say, $50 or $60 to borrow $200 to cover your bills until payday. It makes far more sense to get the short-term loan now than to get hit with all those charges later.
What about overdraft security? Your bank would want to charge you extra for the service of covering you when you write checks for more than you have in your account.
And why not? A few overdraft plans charge fees as high as $35 per overdraft! It; h a huge money-maker for banks. In fact, the biggest banks earn about $1 billion a yr on overdraft fees.
What your bank doesn; t want you to know about payday loans is that they may be less expensive than the lender; s overdraft protection plan. No wonder so many banks are raising a fuss about payday loans — it; s competition for them!
So before you consider using your bank; s overdraft protection plan, take a close look at the cost. You may find that the payday loan will save you some money.
Hard Truth #5:
Almost all pay day loan companies are not the same.
It would be nice if you could just pick any payday loan company and know you; ll get a good deal. Sadly, that; h not the case.
We have scoured the Internet looking for the best companies. I’ve looked at what kind of loans earning, what their fees are, what kind of service they offer, and whether they; re easy to use.
After reviewing dozens of these websites, I; mirielle happy to report which you have some good choices out there. There are also some questionable companies, but we; ll leave those for the authorities to deal with.
If you do your homework, getting a payday loan may be just what you need, saving you money in the long run.
Wishing you great in resolving your cash flow needs!