Pay Day Loans
Payday loans are an unsecured provision of funds borrowed against an incoming paycheck. Payday loans, or commonly known as cash advances, have become increasingly popular with the public because they are very easy to acquire and don’t require any credit verification.
Why People Choose Payday Loans
People choose payday loans to cover unforeseen expenses such as insurance deductibles, prescription refills, and household emergencies. Payday loans are not a solution to long-term financial problems and discipline must be exercised when getting one. Never borrow amounts higher than you can pay back, only get amounts that you know you can pay back. Payday loans, like any other financial contract, are a financial responsibility and you must set a realistic goal.
Cash Advance
Cash advances, otherwise known as cash advance loans, payday loans, or personal loans are unsecured, short-term, small, consumer loans. Through the Internet, consumers may apply for a cash advance online. The amount of money available from a cash advance loan on average range from $100 - $500. The loan amount is wired to the your checking account in as little as an hour, but some lenders may take up to a day to transfer the funds, if you are approved.
Cash Advance Loan Terms
Cash advance loan terms normally range from 4 - 18 days, and end on the applicant's next payday. While some lenders charge a "flat fee", regardless of the cash advance loan term, other lenders vary the rate depending on the duration of the payday loan or cash advance. Also, many cash advance lenders offer their customers the option of "rolling over" a loan, meaning the loan is extended to the next payday and the ensuing fees are then doubled.
What to Expect and Fees
Presently, fees charged on a payday loan, cash advance or personal loan (online) range from $15 to $30 on each $100 advanced. Annual percentage rates (A.P.R) for payday loans generally range between 400% to 1000% APR. However, it should be noted that this is not truly an accurate measure, since, unlike their long-term relatives, cash advance loans are very limited in duration. Therefore, it is illogical to apply a long-term measurement to a short-term service like cash advances. By way of comparison, banks and merchants charge an average non-sufficient funds fee of $24 per check. Meanwhile, credit card companies impose an average late fee of $26, with auto finance companies charging $23. In comparison, the average finance charge on a payday loan is about $18 per $100 borrowed. Translation, a payday loan, personal loan or cash advance IS NOT a bad loan prospect.