It is reported that the number of people doing business with loan providers as well as the number of providers themselves is increasing. If you have never applied for this loan type before, if you are considering the option and want to learn more about it this article can help you a lot.
It is a very short-term loan. Usually the term lasts a week or two. As soon as you get your paycheck you have to repay the loan. If you are not able to make a repayment which includes the borrowed amount plus charges for it, you can extend the loan by paying extra fees plus interest rate for the whole period of extension. That is why a it is called as a “loan sharking”.
By the end of the month you may come across some financial problems covering some urgent expenses like medical bills, phone bills car repairs and others. This usually happens when you fail to keep your expenses up to your income. So to cover these urgent expenses you need a cash.
There are so many companies that offer check cashing services online. Moreover some of the banks and other financial institutions also provide you with a money. You can apply for a loan online or you can go to the financial institution to get a payday loan.
To get a money you should meet certain conditions:
Usually whenever you apply for a loan you will get it the next working day. That means that the best time to apply is from Monday to Thursday, if you apply on Friday you won’t be able to get it till next Monday, and if you apply on Saturday or Sunday you will have your money only on Tuesday. Still nowadays more and more payday loan providers offer you to get money within a couple of hours.
The process of getting a payday loan is very simple and normally you can get the money needed within 24 hours. Company will check your documents and verify the information you provided with an automated system and then approve your loan. The entire process of verification and depositing the loan on your bank account takes two hours. But as it has already been mentioned above there are some companies that will transfer the money to your account less than in 24 hours.
Normally a company charges $15-30 per $100 borrowed. So if you apply get a loan of $100 you will have to pay back $115-130as soon as you get your next paycheck. A payday loan has a very high APR interest up to 391%.
Provided you are applying for a payday loan for the first time you may be given up to $500. as soon as you pay back your loan in time, you can take a loan for more than $500 when you ask the company for another loan.
The company will withdraw the money from your bank account on the date of your repayment, which usually coincide with your payday. Be ready to that and you should be aware of the amount of money that is going to be taken off. If you have found yourself in the position of being unable to pay back the borrowed amount ask to extend your loan term.
Before applying for a loan consider such alternative as asking your friends or family members for the money you need, they will not take any interest and charges for it, moreover if fail to repay the money on time you don’t have to run away from your creditors.