Surveys have proven that the number of payday loan applicants is increasing day by day. It is important to understand how the whole concept of short-term loans works before applying. Short-term credits are issued at short notice, usually between 14 and 30 days. Other names used for payday loans include check loans, cash advances, and payday loans.
It is understandable that from time to time everyone runs into financial hurdles which might require temporary financial assistance in the form of short term credits. There is nothing wrong with needing such a loan several times in your life. Problems with this form of financing only arise when people become addicted to it and constantly take out loans that include high interest payments relative to the term and amount of the loan. Consider all of these factors before taking the next step and applying for a loan.
You applied; After that ?
Once you successfully apply for short-term credit, the amount plus interest is deducted from your next paycheck. In situations where you are unable to repay the required amount, you can rollover the loan by paying an additional fee to the lender plus accrued interest over the rollover term. Loan sharking is yet another terminology used to refer to payday loans.
In most cases, people opt for payday loans out of necessity. There are certain emergency situations that require urgent financial solutions. It may not be easy to ask friends and family for money, which is why short-term loans become a perfect substitute for that.
Places to get a payday loan
There are a myriad of payday companies that offer payday loans to their customers. In addition to banks and financial institutions, you can apply online for short-term credit or go physically to the institution. It is possible to apply online for a personal loan online or to physically go to the lender. The advantage of using the Internet is that you can compare the different offers offered by lenders.
Certain conditions must be met before a payday loan can be approved:
- You have to be employed with a steady income.
- The applicant must have a checking account.
- Applicant must be eighteen years of age or older.
- The applicant must be a resident of the country.
- The applicant is expected to earn $1,000 each month
The best time to apply for the loan is Monday to Thursday since you will get the loan the next day. Usually loans are approved and credited on business days. If you apply over the weekend, you should expect approval and payment to be completed the following Tuesday. Therefore, the best time to apply for a personal loan is between Monday and Thursday.
Loan approval process
It is important to recognize that the loan application approval process is extremely fast. It is possible to obtain the loan within twenty-four hours of application. This is why many people take out short-term loans. The company will check the documents and confirm these figures within twenty-four. Usually the data verification system is automated and named VPN according to the software. The entire process of verifying identity and depositing funds should take less than 24 hours. Some companies deposit the money in less than a day.
Average Payday Loan Costs
Payday loan costs vary from lender to lender. Usually $15 to $30 can be charged for every $100. Therefore, if an applicant borrows $100, he will have to pay $115 to $130. Keep in mind that the APR for payday loan interest can go up to 391%. This should be considered before taking the payday loan.