Nov
28

Payday Loans Made Life Easy

By
payday loan

Have you ever run out of cash before your payday? Did you have a situation where you had unexpected bills to pay and had no money? Or maybe you had a situation where you got sick and did not have enough money to pay your rent? All these situations are familiar to many people. Fortunately there is a solution when you do not have a perfect credit and need a small same day loan until your payday. These type of short term same day loans are called payday loans or cash advance loans.

Payday loans are short term loans that can be applied for and received within 1 hour. Payday loans are relatively new product in the consumer finance market. There are a lot of payday loan companies that simply require the following documents for a loan approval: 2 pieces of id, most recent paystub, recent bank statement, a cheque and a utility bill. All you have to do is simply to go to a payday loan store that is closest to you and bring all the above documents. Once you get to a store, you will have to fill out an application form and provide payday lender with your personal information including telephone numbers, current address and personal references. Payday lender will review your application and based on your last paycheque amount will issue you a loan. You will have to issue a personal post dated cheque dated for your next payday for the principal of the loan plus applicable fees. Service fees that are charged by payday loan companies may vary from one company to another from$15 per every $100 borrowed up to $35. Payday loan companies that are based in smaller communities are likely to charge higher service fees to cover their operating expenses.

On your loan repayment day (typically payday) most payday loan lenders give you an option of either coming back to the store to repay your loan in cash or cashing your cheque. Some consumers can find it very hard to pay back the full balance of the loan in lump sum payment and are likely to go back to the same payday loan store to repay their loan in cash and borrow another one right away. Others who can afford to pay the full balance back will payday lender to cash their cheque. If you ask a payday lender to cash your cheque on your payday, you’d better make sure that you have sufficient funds in your bank account to cover the cheque as NSF charges can be harsh. Some payday loan companies might charge you up to $200 for a single NSF cheque. However, regular NSF charge charged by lenders rarely exceeds $50. If you bounce a cheque, a $100 payday loan can cost you instead of $20 up to $100 just in service charges to your bank and payday loan lender. If your cheque clears your bank account and you need another payday loan, you simply need to bring a cheque and a bank statement for the proof of payment back to the lender.

With the evolving technology, high speed internet and implementation of internet banking a new segment of online payday lenders has emerged. It is very convenient to apply for an online payday loan. You do not have to leave your home or office and you can receive a loan within a few click of a mouse. Online payday loan lenders might require the same type of information as store based lenders, however you might find online payday loan companies that require no faxing but might need more of your personal information. Faxless payday loan lenders might charge higher fees due to higher risks involved. Before applying for an online payday loan I recommend to make sure that the website you want to apply on is a legitimate company. The easiest way to verify that is to call telephone numbers provided on the website and talk to a customer service representative, another way is to check SSL certificate and make sure that it is valid. Do not apply on websites that do not have valid SSL certificates as you personal information may be intercepted by scammers and used for fraudulent activity. There are a lot of affiliate websites (so called matching service). These websites do not act as lenders and simply forward your application to a payday loan lender in return they usually get a fee for every application from a lender). It is like getting a mortgage through a mortgage broker. If you want to apply for a payday loan via payday loan affiliate site, make sure that the site is legitimate.

In conclusion I can say that payday loans are very convenient loans that should be used wisely. You should only get a payday loan in case of an emergency and when all other financing options are unavailable to you. Let’s put it this way, if you know that you have a cheque that might bounce because you do not have sufficient funds in your bank account and you have no other means of getting money, it is better to pay service fees to payday lender rather than bouncing a cheque which can damage your credit worthiness, incur service charges by your bank and by the payee on the cheque. On the other hand if you want to take a payday loan to finance you trip to Vegas or an expensive purchase, it is not very smart financial decision.



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