By Joseph Kenny
Payday loans can be found just about anywhere. They go by different names, but are really the same thing. Most towns have them, and you probably know that Internet advertising has a lot of ads about them. You may have wondered, though, if you should ever need one, just what may be involved. Here is what you need to know about payday loans.
One of the best features about a payday loan is that just about anyone that makes more than $1,500 each month from your employment can qualify. Some will only require you to make $1,000 per month, but that may also mean a smaller loan, too. Besides that, you will need to have worked there for about six months, and then you really should have no problem getting a payday loan.
You do not need to be concerned about your credit score, either. They will not even check it. So you can have any kind of credit problem and it will not effect your ability to get your payday loan.
The way it works is this - you will need a checking account so that they can deposit your money directly into it. This way it offers them some protection, so they will require it. Also, when you apply, you will need to write a check to them for the amount of the loan, plus the interest. It will need to be postdated to when the loan repayment is due, which will be in about two weeks. You could sign a statement that will allow them to take it right out of your checking account on the day it is due.
The amount of money that you can get will usually be somewhere be around $1,500 max. Your first payday loan, however, will be limited to around $400, till you prove you will pay when it is due. Then, this amount will be raised with each one until you are allowed to get the full amount possible.
On the day that the loan is to be paid, all you need to do is to go to the lender and pay for it by cash, if you want, and they will give you the check back. Or, if you do nothing, then the check that you approved will simply be put through your bank, and the money withdraw.
The interest on a payday loan will be high. It does seem to be coming down some, but you can expect it to be much higher than a regular loan, and in many cases, much higher than that of a credit card. It will usually be anywhere between 15 and 30%.
A payday loan can also be rolled over. By paying the interest on the date that the loan is due, you can roll the loan over until the next payday (usually two weeks). This does mean that you will be charged a duplicate interest rate, though, so you would not want to do it unless absolutely necessary.
Joe Kenny writes for Rebuild.org, offering payday loans, or visit UK Loan Store's cash loans for UK residents.
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Source:www.isnare.com |
