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The Answer To Your Fast Cash Needs: Payday Loan

Jan 10, 2008
A payday loan is sometimes exactly what you need to get cash fast, when you need it and whatever you need it for. It is generally the answer that many people are looking for, particularly those with bad credit or have extended their credit beyond its reach.

This type of loan is also one of the easiest types of personal loan to be approved for. Very few companies offering this loan require a credit check. This type of loan is sometimes also referred to as a cash advance loan. All you need is a job, a paycheck stub, and a checking account with a local bank to get your money. But there are some facets to this type of loan that you need to know about before you seal the deal.

First, depending on the company, there might be a requirement on the length of your employment with one company. Some might require that you be employed with the same employer for one month, while others might require three months of employment. You will also have to have a checking account in good standing most likely. This means it should not be negative and they might also look at the number of overdrafts as well.

There are a great number of benefits to this type of loan, but one thing you should know is that the interest charges and fees will be much higher than a traditional personal loan. The amount of the fees will largely be dependant on the amount of money borrowed. With most companies, you can borrow from $100 to $500, and some companies also allow higher amounts, but the fees will almost always be a percentage of the amount being borrowed. It is to your benefit to fully understand the fee structure and interest rate being assessed and how they apply to your payback amount.

For instance, if you do not pay the loan off on its due date, usually your next pay day, and need to extend the loan, you will have to pay additional interest charges. Many payday loan companies allow you to extend your due date up to three times, each time you will be charged interest fees. It is usually best to pay the loan off on or before its due date to avoid excess charges.

The great thing about a payday loan is that they can be helpful when you are in a bind. Many people, especially those with bad credit, take advantage of these loans if they do not qualify for a traditional loan. The biggest differences between a payday loan and a traditional loan are the amount of time you have to pay it back and the finance charges.

There are no rules for what a payday loan can be used for. You can use it for car repairs when that repair cannot wait until your next pay day. It can be used to cover a check you wrote that you don't want to bounce or to take an emergency trip out of town, or any other reason you may have. This type of loan most times will not even ask what you plan to use the money for, since it really does not matter.

If you find yourself in a tight financial spot, a payday loan can be very helpful, as long as you understand the process and the much higher interest and fees involved. The company providing the loan will usually expect payment on your next pay day, which is where the name of this type of loan comes from. There are many online companies that sometimes will charge significantly lower fees and interest for this type of loan.
About the Author
For more insights and additional information about getting a Payday Loan as well as getting a free payday loan quote online, please visit our web site at http://www.personalloantips.com/understanding_payday_loans.php
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