Category: payday loan

Popular Payday Loan Myths Busted!

Securing a payday loan can be a daunting endeavor, especially for a first-timer. The various stigmas attached to the concept of payday loans might add to your sense of unease. Here is a break down of the common myths circulating about the payday loan industry:

Payday loan companies in Valdosta, GA charge a ridiculously high rate of interest

By providing an unsecured loan to a customer in need, an online payday lender is at considerable risk. Therefore, the interest rates charged by payday lenders are higher than those charged by banks. However, the interest rates of payday loans are very reasonable, at approximately $25 for a payday loan of $100. Also, the interest rate on a payday loan is dependent on the duration of the payday loan taken, and the faster the payday loan is repaid, the lesser will be the interest.

There is usually a plethora of hidden fees, which the customer is not aware of

Legitimate payday loans include flat fees, and provide a clear idea about the interest amounts they charge.

Payday loans trap you in an unending cycle of debt

Payday loans are to be used only to tide you over unexpected financial emergencies, and should not be used to manage existing debt. Through responsible lending on the part of the payday lender, and faithful and regular repayment of the payday loan by the customer, you can repay the payday loan on or even before the due date. This not only makes you free from debt, but also improves your credit rating.

Payday loans in Monroe, LA are not secure

Legitimate online payday lenders are committed to protecting sensitive financial information about every customer they serve. The bank account details you provide when registering for a payday loan are fiercely guarded from any unauthorized access, and every effort is taken to ensure that the information you provide is processed safely and discreetly.

Payday loans should be repaid by the next payday

Payday lenders understand that, even though the payday loans provided by them are quite small, you might have some difficulty in repaying the loan within a limited time-frame. Several payday lenders have provisions for easy repayment of the payday loans through instalments.

When in need, go to the bank

When you are in need of instant cash, banks will be of little help to you, since they involve exhausting paperwork, and long queues. The complexity of this process is compounded when you have a poor credit history, which leads to additional stress and worry. In an emergency situation, a payday loan spares you all the added tension and provides you with an instant solution to your financial worries.

Fast Payday Cash an Efficient System

There is only way to go if you want help fast. Payday cash can be made available. There are lenders who specialize in providing this kind of loan. You will only have to make your repayments on paydays. This means your account will always have the right amount of money available for your lender. An important requirement for the payday loan is a permanent job. This assures the lender there will be money in your bank account every pay day.

If you need cash to pay your essential bills then you do need to get it without any delays. Fortunately, the payday loans process is kept very simple. There are no long background checks. t is not necessary for the lender to check out your credit history because this is not taken into account. All you need is a permanent job, be eighteen years or older and have a functioning bank account. Due to the simplicity of the system your application can be approved super fast and you get your money fast. Payday cash in advance could not be any easier.

The ease and efficiency may make some borrowers skeptical. Lenders are aware that if the process is easy and quick they are going to benefit by having many satisfied clients. This means that borrowers are taken care of and lenders make good business. When it comes to loans the payday system is an agreement that has worked extremely well to keep all parties concerned happy.

There can be no doubt that what attracts borrows to the fast payday cash system is the promise of speed. However, those who have benefited from it show their praise by making use of it every time they are in need. They know they are going to be approved and they know they will get their much needed cash very fast.

Getting access to fast cash

Payday loans may be used to provide you with some fast cash should the need arise.

These loans can usually be used for anything you want. It doesn’t have to be an emergency, just something that possibly won’t wait until you next get paid. For example:
your washing machine breaks down
you have an emergency visit to your dentist and now have a large bill to pay
your car failed it’s MOT and it will cost a couple of hundred pounds to get it roadworthy
your child is going on a field trip and needs new clothing
that sofa you have been saving up for is half price for just a few days only

Are you eligible for a fast payday loan?

To be suitable for a payday loan, you will typically be aged over 18, in regular employment and have a bank account with a bank card.

Even if you have had credit problems in the past, you may still find that you may qualify for a payday loan. The amounts involved are typically smaller than for traditional loans so the risks to the lenders are reduced.

Where do you find fast cash lenders?

There are a number of payday loan companies on the internet and the whole application process can typically be completed very quickly.

You may be asked to provide some basic personal details including your employment and your bank account.

What happens then?

Once your application has been completed, a decision will be made very quickly. If your request is approved, the money may be paid into your account within a couple of hours or with some banks, the next day.

You can then use it as you choose.

On the agreed date, typically your next pay day, the full amount of the loan together with interest and any related charges will be debited to your account automatically.

Repeat borrowing

Once you have repaid your payday loan you are free to reapply for another as the need arises. Of course, reputable payday loan lenders will not lend to an individual on a very regular basis as this may be indicative of a debt problem.

The first time you apply for a payday loan you may find that the amount you are able to borrow is less than you perhaps asked for. On subsequent occasions though, once you have shown that you are a reliable borrower, you may find that the amount you can borrow increases.

In any event, the amount you ask for will typically need to be realistic in terms of your actual salary and your ability to pay it back.

Why wait? If you are eligible for a payday loan, getting your hands on some fast cash may be easier than you thought.

Making use of short period loans

If you borrow money, you may hear mention of long and short period loans.

This expression just relates to the length of time the loan is repaid over. This is also sometimes called the term of the loan.

A long period loan is typically one that is paid back over years – a mortgage or major house renovation loan may be good examples.

Short period loans are typically taken out for smaller amounts of money and repaid back over a period of a year or two – perhaps sometimes over just a few months. Possibly a furniture loan would be one such example.

Payday loans

For a long time, most borrowing fell into one or other of these categories – possibly supplemented by the bank overdraft for more variable requirements. Unfortunately, these loan products didn’t necessarily suit the needs of people who wanted a smaller loan just until they next got paid. That’s why the payday loan was developed.

The payday loan is a facility designed to offer you a fast loan paid directly into your bank account – a sort of cash advance on your next payday. When you next get paid, the lender simply debits your bank account to recover the loan plus their previously agreed charges.

Your debt is paid off and you don’t have to worry about ongoing repayments.

As the providers of the payday loan are typically not advancing very large sums for extended periods of time, they are able to make very fast decisions and usually entirely online. If the loan decision is positive, the money could be making its way towards your bank account within a few hours.

Poor credit history?

You may also benefit if you have some question marks on your credit history because the requirements of the payday loan providers may be less demanding than those of the conventional lenders.

As is the case with all lending, the costs of borrowing through a payday loan will vary depending upon the provider. The good news is that typically these loans are reasonably priced and may actually be more cost effective than some unauthorised bank overdrafts.

Cost-effective

For example and at the time of writing, if you wanted to borrow £125 until your next payday in two weeks’ time, using a payday loan from Speed-e-loans it would cost you £18.19 in interest plus a £4.95 bank transfer fee. (Do note that payday loans from other companies will attract different charges and the figures above should be used purely for illustration purposes of how a payday loan may be cost-effective, say when compared to an unauthorised bank overdraft).

The attraction of a payday advance is that it offers very short period loans that minimise your engagement in lengthy repayment periods. It’s borrowed and repaid very quickly. Once that’s done you can forget all about it – until you next need access to fast cash.