Payday Loan Rates: What you need to know

All payday lenders have conditions for borrowing, and some might not be entirely clear. Ask for a detailed explanation before you submit an application if you dont understand the terms of the cash advance. Some lenders are more upfront with their fees, and you should be suspicious of those who do not clearly disclose how much you can expect to pay for finance charges. Undisclosed or hidden fees could make it difficult or impossible to repay your loan on time.

All payday lenders have conditions for borrowing, and some might not be entirely clear. Ask for a detailed explanation before you submit an application if you dont understand the terms of the cash advance. Some lenders are more upfront with their fees, and you should be suspicious of those who do not clearly disclose how much you can expect to pay for finance charges. Undisclosed or hidden fees could make it difficult or impossible to repay your loan on time.

Payday advances are convenient, but the fees youll pay for them are steep. Finance charges can be from $10 to $30 per $100 borrowed, but typically range from $20 – $25 for each $100 increment. Some companies try to exploit customers looking for emergency financing, so knowing the going rate in the market is critical. Youll be paying a premium to get your cash quickly, but comparing rates first can save you money.

Comparing rates can be confusing, however. Each company can have a different way of calculating their finance fees, so you should ask companies for their APR (annual percentage rate) and EAR (effective annual rate). This will allow you to effectively compare rates side-by-side and help you make an informed decision when it comes to borrowing.

Though youll be looking for a good deal, be cautious when rates seem much lower than those offered by other companies. If the rates seem too good to be true, they probably are. Some companies might try to scam customers by offering initially low rates, but apply conditions that make it difficult to repay the loan on time or increase the finance fees to an astronomical amount if you need to rollover the loan.

Most people expect to pay the loan on time and dont anticipate having to rollover the loan. Rollover fees can be avoided by repaying the loan on time, but circumstances might arise that keep you from making the repayment deadline. Its important to know what the maintenance fee is in case you have to request an extension. If you have to rollover the loan, it can save a lot of money in the long run.

You should also find out if the company you borrow from automatically renews the loans by withdrawing the finance charges electronically from your checking account on payday. If your checking account has insufficient funds, youll be hit by fees from both the lender and the bank, and potentially be worse off than you were before you got the loan!

Todays economy means there are more customers in need of emergency short-term funding, and more people applying for payday loans. There are also more companies getting into the game of payday lending. Protect yourself by looking before you leap. When you need an emergency loan, it pays to shop around.

Why it is OK for Informed Borrowers to use Cash Advances!

Everybody is familiar with unexpected expenses. Life is filled with surprises, and many are of the financial kind. Whether you need money for emergency medical expenses, to cover the gap during a job change, or you find yourself hit with essential home repair bills, weve all been there. You just need that little bit of extra money to carry you through to the next paycheck.

Its also not the case that payday loan customers typically have no other options when it comes to credit. In fact, after considering other possible borrowing options, these customers have picked a payday loan as their first choice when compared to other possible borrowing solutions. Most payday loan customers have at their disposal other credit options that include credit cards, lines of credit and other methods of borrowing. While they may have debt that is a bit higher than average, the point is that they do have credit available; they have simply chosen payday loans as their first and best option for borrowing.

There are a lot of misperceptions about payday loans. Some people view payday loan companies as the lender of last resort, but there are many reasons people from all walks of life make payday loans their first choice when theyre in need of quick cash. Lets take a look at some little known facts about the benefits of payday loans and whos taking advantage of this short-term borrowing option.

Probably the most common assumption about payday loans is that theyre used exclusively by people from low-income households. On the contrary, most payday loan customers are employed full time (over 75%) and almost 50% are college educated, showing a household income thats average or better when compared to other local households. Young, poor, and uneducated are simply the wrong adjectives for these consumers, who instead tend to be college grads, an average age of 38, and show an income of $25,000 to $50,000 per household.

Its also not the case that payday loan customers typically have no other options when it comes to credit. In fact, after considering other possible borrowing options, these customers have picked a payday loan as their first choice when compared to other possible borrowing solutions. Most payday loan customers have at their disposal other credit options that include credit cards, lines of credit and other methods of borrowing. While they may have debt that is a bit higher than average, the point is that they do have credit available; they have simply chosen payday loans as their first and best option for borrowing.

This leads to the next point: the myth that payday loan customers are irresponsible borrowers when it comes to repayment. The fact is that four out of five customers repay all their loans on time. Theyre aware of the fees they can expect to pay, and also of the negative credit consequences for failing to repay. In addition, they dont take out large amounts; the average payday loan is only about $300.

Dispelling these common payday loan myths creates a more accurate profile of the average payday loan customer, but with this information in mind, you might be wondering why they choose payday loans over other options. Well, that answer is simple. Payday loans are CONVENIENT, and thats clear to the educated borrower.

Payday loan companies typically have hours that extend well beyond the 9-5 hours of banks, locations that are numerous and easily accessible, and their customers can borrow the small amounts they needed and get the cash quickly. Traditional lenders cannot match the convenience or speed of this service, and may not even offer loans in smaller amounts, even though they charge lower interest rates. Theres also no need to fill out extensive paperwork for a payday loan; all thats typically required is proof of employment and a steady income.

You might not have considered a payday loan as an option for you when it comes to short-term borrowing, but its definitely worth a closer look. Keep this solution in mind, because a payday loan might be just the answer to your next unexpected financial need.

When Should I use a Payday Loan vs. a Bank Loan?

If you need extra cash to cover expenses, you’re probably trying to figure out the best way to borrow money. There are several options to consider, including borrowing money from friends or family, getting a cash advance with your credit card, taking out a traditional bank loan, and applying for payday loan. This article will cover the last two options, bank loans and payday loans, and compare the requirements and advantages of each. After reading more, perhaps you’ll have a better idea of which is the right choice for you.

There are several important factors to consider when deciding which type of loan you need. Do you need a large amount? What is your credit history? When will you be able to pay back the loan? Lets look at a few key points that can help you decide if you if you should apply for a bank loan or a payday loan:

When do you need the money?

A banks loan approval process takes time ” typically weeks (or even months in the current economy). So if you need cash fast, a bank loan is not for you. Bank loans work better for planned expenses than for unforeseen financial emergencies. A payday loan, on the other hand, means the loan will be approved quickly and you can have cash in your checking account in as little as 24 hours.

How much do you need to borrow?

A banks loan approval process takes time ” typically weeks (or even months in the current economy). So if you need cash fast, a bank loan is not for you. Bank loans work better for planned expenses than for unforeseen financial emergencies. A payday loan, on the other hand, means the loan will be approved quickly and you can have cash in your checking account in as little as 24 hours.

What is your credit score?

First of all, you should know your credit score. The bank certainly does. Your credit score will play a large role in any banks decision about your loan application. If you have bad credit, it may be impossible to obtain a loan through your bank. On the other hand, payday lenders dont look at your credit score. They only verify that you have a steady, reliable source of income to determine whether or not to lend you money. If your credit isnt great but you have a steady job, a payday loan might be right for you.

When are you able to repay the loan?

If you can get approved for a bank loan, youll typically have years to repay the loan and have the option of making very low monthly payments. This is convenient because you know you have time to repay your debt. With a payday loan, you usually have a couple of weeks or at most a month to repay the full amount of the loan, plus the interest charged. You have to keep in mind that a large part of your next paycheck will go to pay back your loan, so be prepared to cover your normal monthly expenses and settle your debt in a tight timeframe.

Finally, a note about interest rates. . .

Remember that a payday loan is a SHORT-TERM credit option. Payday lenders charge high interest rates for the convenience of obtaining a quick and simple loan, so these types of loans should be used for emergency expenses only. Rolling over a payday loan can be costly, so plan on repaying it in full with your next paycheck.

After answering these questions, you should have a better idea of which type of loan best fits your needs. Consider all your options carefully before deciding if a bank loan or a payday loan is right for your financial situation.

The Benefits of an Online Cash Advance

For consumers who find themselves facing bounced check fees or late payment penalties for overdue bills, payday loans are a short-term solution that can help them cover their expenses and protect their credit rating. Everyone is familiar with unexpected expenses: your car needs repairs, your roof leaks. Maybe you got a bill from the doctor thats more than you planned on or suddenly its time to pay your car registration again. Some months you paycheck just doesnt cover your bills. You cant delay addressing these problems, but you might not have the money to cover these costs until you get your next paycheck. So, what are your options?

Payday loans are a short-term credit option that can help you meet emergency financial needs and provide cash, right away. You may not be able to wait until your next paycheck and need a quick loan to avoid getting into real financial trouble. Fixing your temporary cash flow problem by getting a payday advance could be much cheaper than taking out a advance on your credit card (if its even an option), much faster than applying for a short term bank loan, and much less complicated than trying to convince a family member to lend you some cash.

One of the biggest benefits of a payday loan is the quick turnaround. In most cases you can get the loan approved and have the money in your bank account in as little as 24 hours. Theres no waiting for the bank to process a lengthy application. Keep in mind that youll have to pay interest and its only a SHORT-TERM loan, but it will let you cover your immediate expenses and buy you time until your next payday, when youll have to repay the loan.

Another reason a payday loan might be the way to go is that the application is simple and its also easy to qualify. You might not even have to leave your home ” many companies will let you apply online. You just need to prove that you are employed and have a steady income, that you have a checking account in good standing, and that you earn a minimum monthly income, usually around $1000.

Another reason a payday loan might be the way to go is that the application is simple and its also easy to qualify. You might not even have to leave your home ” many companies will let you apply online. You just need to prove that you are employed and have a steady income, that you have a checking account in good standing, and that you earn a minimum monthly income, usually around $1000.

Another reason a payday loan might be the way to go is that the application is simple and its also easy to qualify. You might not even have to leave your home ” many companies will let you apply online. You just need to prove that you are employed and have a steady income, that you have a checking account in good standing, and that you earn a minimum monthly income, usually around $1000.

Payday loans are often called bad credit loans, and this is another reason it might be an option for you. Your credit history is not an issue (it is with the bank!), and the only thing thats important is that you can prove youre employed and have a reliable source of income. In fact, a payday loan could actually help you maintain your credit by allowing you to pay your bills on time. In addition to preserving your credit, it can also be cheaper to pay the interest on a payday loan than pay late fees for missed payments on your accounts.