From different surveys, it is seen that the number of customers taking payday loans as well as payday loan companies are increasing frequently. If you are a first time payday loan taker or want to collect payday loan information then this article will be of great help to you.
Payday Loan Definition:-
The payday loan is a very short term loan. Usually the time frame is 1-2 weeks. There are other names for payday loans such as: “Cash Advance”, “Paycheck Loan”, “Check Loans” and “Payroll Advance Loans”. After receiving your paycheck, the loan must be repaid. If you are unable to repay the loan amount plus lender fees for the payday loan on your payday, you can roll over the loan amount by paying additional lender fees plus interest along with the rollover period. Therefore, the payday loan can be referred to as a “Loan User”.
Payday Loan Need:-
By the end of the month, you may face some problems in keeping up with some urgent family expenses, like paying your medical bills, phone bills and electricity bills, house rent or some other utility bills. These things usually happen when you can’t budget properly when you get your paychecks or don’t keep your spending within your income limit. Therefore, to cover those urgent expenses, you need a payday loan.
Payday Loan Companies:-
There are so many companies that are promoting online check cashing services. In addition, some banks and other financial institutions also provide you with a payday loan. You can apply for a payday loan online or you can physically visit an institution to take advantage of a payday loan.
Conditions to be met to get an instant payday loan:-
The criteria of the different payday loan companies are:
1. You must have a job or there must be a regular source of income.
2. You must have an A/c checking account in a bank.
3. You must be a US citizen.
4. You must be at least 18 years of age.
5. Your monthly income must be at least $1000 per month.
Best payday loan application time:-
If you apply for the loan from Monday to Thursday, you will get the loan on the next business day, that is, from Tuesday to Friday. If you apply for the loan on Friday, you will get the loan on the following Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.
So the best time to apply for the loan is from Monday to Thursday.
When will you receive the money?
As the process is very simple to obtain the loan amount, you will generally get your loan amount within 24 hours of applying. The company will review your documents and verify your details with an automated system called VPN-based software and then approve your loan. The entire process of verifying your identity and depositing the money into your A/c checking account takes 24 hours. There are some companies that will deposit the loan amount in less than 24 hours.
Payday Loan Costs:-
Typically, a payday loan company charges $15 to $30 for every $100 borrowed. So if you borrow $100, you’ll have to pay between $115 and $130 on your next payday. The payday loan cash advance interest APR increases to 391%.
Maximum payday loan limit: –
If you’re taking out a payday loan for the first time, you can get up to $500 for the first time. After paying your first loan amount on time, you can take advantage of more than $500 when you visit the company again for another payday loan.
Think before you take a payday loan:-
1. You must take into account the APR factor of the loan before taking it. You must find the company that charges a lower APR than its competitors.
2. You must take care of the privacy of your document and information. So if the tendency of the company is to process the information of the applicant in an encrypted page, you must think that your information will not be licked and then you can continue.
3. You must read the company’s policy and the legal issues that are met before submitting an application form to them.
Payday Loan Repayment:-
The lending company will deduct the money from your current A/c on your payday date. You must be ready and aware of your payday and the amount to be returned. If you don’t repay the loan on the scheduled date, you may need to ask the lender to roll over your loan amount.
Alternatives to Payday Loan:-
1. To avoid taking out a loan with interest as high as your payday loan cash advance, you must make a proper budget that is consistent with your income.
2. You can also save a certain amount of money from your paycheck each time you receive it.
3. Before taking a payday loan cash advance, you should seek a loan from a friend or relative, as they will not be interested in lending you the money. Another thing is also involved here: if you can’t pay the money in the future, you may not have to run from your creditors.