Stuck in a rut and want to find a way out? Perhaps all that you need is a payday loan. If you are unsure as to what a payday loan is, here is all that you need to know about it.
A payday loan is a short term loan and generally isn’t more than $1,000. However, the amount that you can borrow as a payday loan depends on the provider you are taking it from. There are plenty of payday loan providers out there today and you need to pick one that you can identify with.
Advantages of getting one
There are plenty of advantages when it comes to payday loans. For example, payday loans can be got in as less than a day. The obvious advantage with a payday loan is that it helps you tide over an immediate crisis or problem.
What do you need to do to avail it?
Often, lenders charge a high amount of interest on the payday loan they offer you. However, there are a number of things to keep in mind here. One, you need to give the lender access to your checking account or write a check to them in advance – the lender policies differ and you need to ask them what type of documents they need to help you get the payday loan. These days, you can also get a payday loan by just filling up some forms online on the lender site and while the lender might call you up for some verifications, it is pretty easy going.
How do you pay back the loan?
Unlike other loans, you can pay these loans only through interest only payments. Although this isn’t unusual it does mean one thing, that you would be having a good amount of interest on it. Sometimes, payday loans service provider can even be paid over a longer period of time, you need to ask your payday loan provider as to the policy that they use.
How do you get the loan?
You will get the loan either in the form of a check or cash. Some lenders can even deposit money directly to your check account. Check with your lender as to how he deposits the money and if you can choose the method of deposit.
Normally, you will be expected to pay around $10 to $30 for every $100 that you borrow. The lender calculates the amount through APR rate or annual percentage rate. This means that if you take a payday loan for two weeks, and be expected to pay $15 for every $100 you take, you would be paying an APR rate or Annual Percentage Rate of nearly 400%. APR on credit cards can be got for far less – however, you cannot deny the advantage payday loans have, they help you tide over an immediate crisis. You may not be able to get a loan from your card company as soon. Apart from this, various state laws and national policies regulate the interest charges and the fees you need to pay.
