Payday loans are short term loans for small amounts that you have to pay back on your next payday. This means that they usually last for just a few weeks. The amounts tend to be to no more than $1,000, although there are some exceptions. All payday loans have very high interest rates.

The Process of a Payday Loan

If you are thinking about applying for payday advance loans online, you will have to meet a few very basic requirements. These include:

  • Being in steady employment.

  • Having an active bank account.

  • Being at least 18 years old (21 in some states).

  • Being a legal and permanent resident of the country.

Payday Advance Loans

In most cases, applications for these types of loans are completed fully online. You effectively give the lender to run some checks on you to see whether the information you have provided on your income, residency and employment status are correct. They may, for instance, telephone your employer to confirm you work there and that your salary is as described. The overall process, however, should take no more than a few hours and most payday lenders guarantee to have the money in your account by no later than the next working day.

The Benefits of Payday Loans

Payday loans can help you out if you have an unexpected financial emergency like a repair bill, a forgotten bill, a medical bill or a family emergency. These are situations that arise without notice and can be hard to manage. Asking friends and family members of money is very embarrassing, even if that is what financial advisors recommend we do. Applying for a payday loan is an alternative, quick fire solution. As such, these types of loans offer a number of clear advantages:

  • You can get money really quick.

  • The application is hassle free. You simply complete the application online and the money is in your account within just a few hours.

  • You don’t have to speak to anyone personally, provide them with forms or any other complicated issues.

  • You don’t have to have a good credit rating in order to be eligible for a payday loan.

At the same time, you have to be aware that there are some dangers associated with payday loans as well. While they are a quick and easy opportunity to get your hands on some much needed cash, they have incredibly high interest rates. This means that you must pay the loan back as soon as possible, even if the lender does offer you an opportunity to roll it over for an additional month. It will often take you just four months to pay as much in interest as the amount you actually borrowed, which demonstrates just how high the interest rate is. Additionally, defaulting on these types of loans must be avoided at all times. The penalty charges that you will be hit with are sky high, which is why these lenders have often been accused of unscrupulous practices.

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