Payday Loans

Do you want cash now however your payday is a week away, are you short of cash and require financial help? If so you have in all likelihood heard of payday loans and may be wondering about using this type of credit service. If you need quick cash a payday loan, especially if applied for online, is a speedy and easy way of obtaining emergency finance.

There is no credit verification when you request a payday loan so even if you have a inadequate credit history you can still qualify without any problems, and once you have demonstrated your credibility with the loan company they will commonly permit you to borrow a larger amounts than is usually possible to new borrowers.Whenever you apply for a payday loan during business hours you can be accepted in a matter of minutes and have the cash lodged into your bank account by the next business day at the very latest.

Before you apply for a payday loan you had better know that they are very expensive especially if you do not pay off the cash back when it is due. Nonetheless some borrowers are not worried about the expense, they only want to know can I afford to repay the amount due next payday, if so just give me the money to get me out of my immediate financial problem.

Payday loans are provided by finance organization, and are occasionally also called cash advance loans, check in advance loans or deferred deposit cheque loans. The routine to obtain a payday loan is terribly easy, you write a cheque for the total you want to borrow plus the lending companies charge. The lender then provides you with the amount of your cheque, minus their fee and does not present your cheque till your next payday.

On your next payday you have assorted alternatives: -

a. Let the lender to cash your cheque and clear the loan.
b. Extend the loan for a further period of up to 30 days, this can commonly only be done twice.
c. Repay the loan in cash.

Payday loans offer short term credit at very expensive rates, since there is no credit check, when you employ a payday loan you will be charged either a percentage of the monetary amount borrowed or a set fee based on how much you borrow.

Average costs are between $15-$50 for every $90 lent. Remember if you decide to extend your loan you will have to pay the total fee again and this rapidly becomes exceedingly expensive.

The truth in lending Act gives you the right to know the cost of any lending you request for, therefore you must obtain the following in writing

1. The annual percentage rate (APR), the cost of credit on a yearly basis.
2. The dollar amount of the applicable interest.This lets you see the true cost of the loan.

If at all possible it is always better to make sure your are not using a Payday Loan, more available sources of cash are

A credit union loan.
A loan against your next paycheck from your employer.
A loan given by family or friends.
Even a cash advance on your credit card.
Asking your creditors to provide you more time to pay off.

If all else fails you require the cash and no other source is out there and you decide to take a payday loan it is all important that you pay it back on the due date and avoid additional high charges.

For further vital information and views about Payday Loans visit www.paydayloancenter.com

Payday Loans Provide a Necessary Service!

I think Payday Loans are both necessary and provide a valuable service regardless of the perceived problems of high charges, first lets clarify what Payday Loans provide, short-term cash advances until the next payday.

The typical charges for this type of loan are of the order of $15-$20 per hundred dollars borrowed so if you took a $250 loan the charge could be as much as $50 for a 30 day loan, this is equal to 240% APR, with such high rates one has to ask why is this industry growing so rapidly.
The answer is that it is providing a service that is required, at a price that the consumers can afford; the actual APR is of no great interest to the customer their only concern is can I afford to repay the loan on my next payday.

Think of it from the client's point of view, why do they use Payday Loans, I believe the answer falls into two parts

One. Because it is fast and convenient.

Two Because they probably cannot get credit in any other way.
For a borrower with a poor credit history Payday Loans offer a cash lifeline when it is most needed, to pay those unexpected bill or to prevent repossession of an item that has been bought on credit for example.

Problems only arise when clients are unable to repay loans but surely this applies to all forms of credit not just Payday Loans.

All the above not withstanding one still has to ask, are the high charges applicable to Payday Loans justified?

I think they are, first because payday lending is usually dealing with high-risk clients with a poor or no credit history. Second the costs of issuing a Payday Loan are much the same as issuing a much larger loan over a longer period, but these costs have to be recovered in a much shorter timescale with a Payday Loan hence the need for higher charges.

To summarise, Payday Loans provide a service that is in high demand by clients who can generally be considered high risk from credit point of view and the charges reflect the costs involved. If there were no need for the service, in a free marketplace it would cease to exist but until alternative sources of finance are available to them people will continue to use Payday Loans regardless of the charges and other apparent disadvantages.

For further vital information and views about Payday Loans visit www.paydayloancenter.com