What is Payday Loan?
Payday loan refers to the little amount of money you can borrow, but comes with high interest rates. Payday loans can be paid when the customer receives his or her pay check. The loan is useful, especially to those who are short when it comes to their budgets. In order to avail yourself of this loan, you have to write a check for the amount that you wish to borrow (including its fees), and make it out to the lender. People who use these loan are the ones who do not have any savings accounts or credit cards.
A loan like this serves its purpose for those who have the financial means to pay it back quickly; for those who are slow to pay back such a loan, they run the risk of incurring inflated fees that can only attract debt collectors (making a bad situation worse); so, if Prestige Collections Agency (or any other debt collector) is calling you over a payday loan that is in default, seek legal council.
A payday loan is beneficial in ways that you can borrow money faster, especially for emergency purposes. Payday loans can be the answer to all your financial shortcomings, like when you need to pay some bills, debts or other outstanding expenses; this loan requires no credit checks. It is the easiest way to borrow, for people who are in urgent need of money. It can be a positive move to borrow money, but it can also be a negative thing to some. Acquiring this kind of loan is a bit risky, since you will only be given a short period of time to pay the loan back.
Sometimes, it only took two weeks for you to pay back the money you borrowed. Loans like these demand that you pay the debt back quickly – as this is not a long term loan. Another thing is that, if you were not able to pay it back by the deadline, you will be charged fees that can only increase your loan. Payday loans are far more expensive than any other loans.
If you are planning to avail yourself to this loan, it’s best to think twice, and assess whether you really need the money; because applying for this loan is can burn a hole in your pocket, if you’re not careful! Think deeply, if it is really an emergency; if it’s not, you’re better off just waiting for your next pay check. If a medical bill needs to be paid off, immediately or if you’re paying off a debt from national credit systems (or some other debt collector), then a payday loan makes sense – as long as you use it for something important.
There are several types of Payday loans that you can access, and they are:
Online Payday Loans only lasts for fourteen days and is for short term only. This type of loan is given with a fee that needs to be paid. When accessing this loan, some online lenders require you to give proof of employment and your income. The usual amount for this kind of loan is from $100 to $1,000. You can have the loan within 24 hours.
No Fax Payday Loan is also a type of payday loan where it does not require you to mail or fax them documents, and the application can be done online. The amount that can be borrowed from this type of loan is from $200 to $500. You can have the money once you finish your online application. It can be a same day transaction.
Military Payday loans are special loans for military employees, but the rules for this kind of loan is quite strict: If a military personnel does not meet their monetary obligations, they can be subjected to a transfer, confinement or can be discharged from service. Military personnel can borrow money up to 40% of their monthly income, depending on their rank.
Low Fee Payday Loans are loans that charge lower fees than the normal payday loan. The amount that can be borrowed when you use this type of loan, ranges from $100 to $1,000. To get the money, you still have to wait 1 to 5 business days, and there will be an additional fee if it is to be deposited on the same day.
24 Hour Payday Loan is where your loan is processed as quickly as possible, and the money can be deposited in your account, the next day. The money that can be borrowed from this loan is from $100 to $1,000, but lenders still will consider lending larger amounts of money.
Paperless Payday Loans are done online and over the telephone. It does not need any proof of employment or income. You can borrow money, which ranges from $100 to $1,000, and sometimes it depends how much you need the money.
30 Day Payday Loans is where you can repay your loan within 14 days. The longer you take to pay back the loan, the higher the fees becomes. When you take out this loan, you can borrow $200 to $1,000.
A payday loan is very useful in a sense that you can easily borrow money when there are emergencies, and when you are short on cash. It has benefits that can tempt many people into using it, but there are also negative things that this type of loan can bring – like harassing calls from Hunter Customer Services, after failing to pay the loan back. The amount you will be paying back will be higher than the money you originally borrowed. When applying for loans, always think it through and never hesitate to consult your banks or lending companies, to inquire more about a loan before you commit to it.