Why would you get a payday loan?

Payday loans are popular for a number of reasons. To those who are in the position of needing one, the advantages outweigh the disadvantages. And there are disadvantages, but we’ll look at those later.

First, put yourself in the shoes of the person who needs some quick cash. Perhaps you’ve just been put in the unenviable position of unexpectedly needing some cash and being “caught short”. You might have had an unexpected medical bill or car repair bill, or you might have to travel unexpectedly, like in the case of a death in the family. Others who need quick cash use it to pay their everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need that cash and you just don’t have it.

Is a payday loan your last resort? Do you have other alternatives you could explore first? Well, what are the benefits of payday loans? Let’s see:

* You won’t have to go through the hassle of a credit check.
* You can apply in person, on the phone or on the Internet.
* The process takes less than 20 minutes.
* The loan proceeds are automatically deposited into your bank account within 24 hours.
* It’s affordable, at least immediately – you don’t have any up-front costs.
* It’s discreet – nobody else is involved.
* It’s secure – your financial information isn’t shared with others.

Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.

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What is a Pyaday Loan?(For New Visitors)

A payday loan or cash advance is a small, short-term loan (typically up to $500) without a credit check that is intended to bridge the borrower's cashflow gap between pay days. Note, however, that the term cash advance can also mean cash provided against a prearranged line of credit such as a credit card.

Payday loan direct is a sort of easy payday loan that allows you to get cash very fast directly into your account. This online payday loan with instant approval is a great financial tool in your hands when you are in dire need of cash because of an emergency. The overall process of getting the online payday loan is so smooth that money comes to your account within hours after you have submitted the application.

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How long the repayment term?

As the name suggests, pay day loans are cash advances that you are supposed to pay when you receive your next pay. The term may vary depending on the date you usually get paid, but usually you have two to four weeks to make the repayment. If you think you are unable to pay off the loan on time you should request for an extension until you have enough funds to repay.

You can make the repayment in one big lump sum or installment. Keep in mind though that the longer it takes to make the repayment the higher you have to pay for the interest. Our recommendation is to borrow as much as you can pay. Look at how much you actually need and your capacity to make the repayment on time.

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Repayment Option

The key to your experience with our online payday loan service is that you understand the importance of repayment by the agreed upon date, and close the book on this loan as promptly as possible. Late charges will follow if you file for an extension (though the option is there), making the process potentially more trouble than it's worth.

Many of the payday loans providers offer you with flexible repayment options. Get to know about the repayment options of the particular provider that you have opt for and confirm whether it is suitable for you before applying. If you are confident that the repayment option is best suited for you, go for it! With the growing number of the payday loan providers online you can be confident that the payment option provided by one will be always better than the other

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The Loan Process

Borrowers visit a payday lending store and secure a small cash loan, usually in the range of $100 to $500 with payment in full due at the borrower's next paycheck (usually a two week term). Finance charges on payday loans are typically in the range of $15 to $30 per $100 borrowed, which translates to rates ranging from 390 percent to 780 percent when expressed as an annual percentage rate. The borrower writes a post-dated check to the lender in the full amount of the loan plus interest and fees. On the maturity date, the borrower is expected to return to the store to repay the loan in person. If the borrower doesn't repay the loan in person, the lender may process the check traditionally or through electronic withdrawal from the borrower's checking account.

If the account is short on funds to cover the check, the borrower may now face a bounced check fee from their bank in addition to the costs of the loan, and the loan may incur additional fees and/or an increased interest rate as a result of the failure to pay.

Payday lenders generally do little due diligence to assess a borrower's ability to repay a loan, but many do require the borrower to bring one or more recent pay stubs to prove that they have a steady source of income.

Most payday borrowers are not able to repay their loans loan in full at their first paycheck, and will renew the loan, which is the practice of renewing a loan at maturity by paying additional fees without any principal reduction.

Payday lenders typically operate small stores or franchises, but large financial service providers also offer variations on the payday advance.

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What do you need to get a payday loan?

To get a cash advance you must be a U.S. citizen at least 18 years of age, be employed at your current job for 3 months or more, have an active checking account, and earn a monthly income of at least $1000 after taxes.

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