Wednesday, January 09, 2008

A Payday Loan Can Get You Fast Cash When You Need It

By Jay Anderson

A payday loan is the type of loan you should seek if you need fast cash in a hurry, since this type of loan has quick approvals and virtually no credit checks. The aspect of being fast is probably the biggest draw for this type of loan, where you can usually have the money in a matter of hours. And since no credit check is required, this is especially helpful for people with bad credit.

This type of loan is also one of the easiest types of personal loan to be approved for. Very few companies offering this loan require a credit check. This type of loan is sometimes also referred to as a cash advance loan. All you need is a job, a paycheck stub, and a checking account with a local bank to get your money. But there are some facets to this type of loan that you need to know about before you seal the deal.

You will typically need to have a minimum amount of employment with your current employer for at least a month, sometimes three months, and with a few more stringent companies, even six months. Your checking account must be with a local bank and should not be in the negative when you apply. The company offering this loan may check with your bank about the number of overdrafts you've had in recent months, but that is virtually as far as any type of credit check will go.

Although this type of loan is quick, the downside is the much higher fees involved. The amount of the fees will usually depend on the amount being borrowed. You can usually borrow from $100 to $500 with companies offering this type of loan, and some may even go higher, and the fees will be a percentage of the amount borrowed. Make double sure you understand what those fees are and which fees will be applied to your loan.

For instance, if you do not pay the loan off on its due date, usually your next pay day, and need to extend the loan, you will have to pay additional interest charges. Many payday loan companies allow you to extend your due date up to three times, each time you will be charged interest fees. It is usually best to pay the loan off on or before its due date to avoid excess charges.

If you get into a financial bind and need money quickly, a payday loan can be a great thing because it is so quick to get. Especially for people with bad credit, taking advantage of this type of loan can be great because they would not qualify for a traditional personal loan. But the huge difference between a traditional loan and a payday loan are the amount of time you have to pay it back and the much higher interest rate and fees.

There are no rules for what a payday loan can be used for. You can use it for car repairs when that repair cannot wait until your next pay day. It can be used to cover a check you wrote that you don't want to bounce or to take an emergency trip out of town, or any other reason you may have. This type of loan most times will not even ask what you plan to use the money for, since it really does not matter.

Payday loans have proven helpful to many people when in a tight spot. They will generally loan you money and expect payment on your next pay day, which is where the term payday loan comes from. You can find companies online or in your local area easily.

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Blogger Stacey Laura said...

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January 17, 2008 2:58 AM  

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