Payday loans go by several different names such as cash advance, cash advance loan, payday advance, check advance loan, post-dated check loan and deferred-deposit check loan. Irrespective of what name it goes by payday loan is basically a fast cash option, short term loan at rather high interest rates.
Do you require a payday loan? Maybe you have urgent need for some funds and are unable to get approval for a bank loan or secure the money from other sources. Continue to read and understand the Read .
Do you qualify for a payday loan?
If you are in the position of needing a payday loan then the advantages will certainly outweigh the disadvantages. If you are in the unenviable position of needing a loan quickly and with minimum fuss and hassle then read on to understand the benefits of payday loans.
? Credit checks ruled out: there will be no problem of credit checks when you apply for a payday loan.
? Easy apply options: you can apply either in person, via the telephone or on the ever increasingly popular internet. The process takes less than 20 minutes and is relatively pain free.
? Automatic transfer of loan proceeds: within a maximum of 24 hours the proceeds of your loan are automatically deposited into your bank account.
? No up front costs: at the outset the process is affordable in the sense there are no initial payments to be made up front.
? Discreet process: it is just you the applicant and the loan giver who are involved in the transaction.
? Security: your financial information is kept confidential and not shared with anyone.
? Rollover: payday loans are renewable or extendable and the process is called "rollover".
Let us now look at the basic requirements you will need to fulfill to be eligible for the loan.
? Maintain a current account in your name for minimum 6 months of operation.
? You should qualify as an adult citizen of your country.
? Hold steady and regular employment (current) for a minimum period of 6 months.
? Maintain your residence address (current) for a minim of 3 months
Having looked at the benefits of payday advances and the eligibility criteria you need to confirm to, the time has now come to study the downside or disadvantages of payday loans.
The downside to availing payday loans is the very high interest you will end up paying. Human nature being what it is, even if we budget to pay back the loan, something is bound to come up and disrupt your plan. You will then roll over the payment which will lead to higher interest payments and so it goes on. Unlike the interest rates charged by most banks, you will find that the rates for these types of loans are sky-high. It is also important to examine the term of your loan. Most traditional financial lenders have a term that is at least a year or two. With payday loans and fast cash loans, you often only have a few weeks to make a repayment.
So long as you remember that payday loans are a quick fix solution provided you repay in time and avoid exorbitant interest rates then it is a good solution to your immediate problem. On the other hand you need to be responsible in managing your finances and ensure payment is made within deadlines.
