Do you want to get a payday loan no matter what? There are cautions we must provide you with before you get that payday loan. We will also look at how you can get a payday loan no matter what your financial situation is. Below is a list of helpful information that you can make an educated decision from.
Payday loans will have a fee ranging from 1 to over 30 percent. The average fee for most companies is 30 percent. If you borrow $100 from a payday loan company you owe them at least $130 if the fee is 30 percent.
Depending on the loan amount you need you may find the APR is set up at 300 to 1400 percent. Typically the lower amount that you borrow has a lesser interest rate because the interest rate is based on risk. If the company has a smaller risk they offer a lower interest rate. This is not always true, but it does matter in giving you an average of how things work.
The APR is based on a 12 month period. Most loans are 7, 14, or 16 day loans. If you are paid each week you loan terms will be seven days. The company expects to be paid when you get paid. You are charged a periodic rate for the time you have the loan. The interest will only reach 300 to 1400 percent if you fail to pay the loan in under a year.
Despite how the rate is calculated you are still paying out more in interest for a payday loan than you would on your credit card or other line of credit. Most individuals find they owe double what they borrowed from a company in 7 days.
From the information shared above you have a basic understanding of how the payday loans might work. There are also some qualifications most companies will require you to meet.
– Be 18 years or older
– Employment for at least six months with the same company
– Have a bank account that is 3 months or older
These are the three main qualifications. Some payday loan companies may require a credit check in which they will run your credit history. A company that does this is looking to see if you have any other payday loans that are outstanding. They are also looking to see if you have bad credit. If you do have bad credit they may charge you more for the payday loan.
The majority of payday lenders do not run credit checks. They do ask for an application to be filled out either in their land based store or online. The application will be processed with the references listed called. If the company is satisfied with the application they will award you the funds you require. The funds are deposited into your bank account. This process is usually 48 to 72 hours long. Other companies might promise the funds in an hour or in a 24 hour period.
If you are awarded the funds, the payday loan company will set up an automatic draft. In other words they will have a draft in place to take the payment owed on the day you get your next paycheck. They will take the amount owed, the fee, and the interest earned on the loan in one lump sum. It can be difficult to pay your other bills in this situation. It may also be that the draft comes in before your pay check.
You can set up a payment plan to avoid getting bank fees in the event of an early draft. However, a payment plan can be more costly. If none of this information worries you than you can get a payday loan no matter what.
Plenty of online sites guarantee you the funds if you can fulfill the qualifications mentioned above. This guarantee is not always the amount you require, but they do guarantee some lending of funds. You should never take more in a payday loan than you need since there are such hefty fees. You may also want to consider the other alternatives you might have. Some of these other solutions are not instant cash, but they are going to cost you less. For example there are unsecured personal loans you might obtain from a bank. The bank will weigh your emergency situation, financials, and history to determine if you can get the loan, but the interest is certainly less.