Most of us have encountered times when extra hundred dollars or so will help us tide over our difficulties till the next paycheck. As these situations can arise without any warnings, getting a payday cash loan is one method of meeting these situations. You can easily get these loans. Here is some information about these loans.
Easy To Obtain
A payday loan is one of the easiest loans to get. There is hardly anything required to be approved for it. Most of the times, you just have to prove you are above 18 years, have resided in your current place for the last 6 months, hold a checking account, and earn more than $1,000/$1,500 each month.
No Credit Check Or Collateral
Applying for a payday loan is very fast. As long as you fulfill the elementary requirements, approval is assured. Credit check is absent, since the money is actually deposited into your checking account - and then withdrawn from the same. At the time of application for the payday loan, you hand over a check for the amount you have borrowed, along with the accrued interest. Afterwards, if all’s well, the money is deposited in your account within 24 hours. There is no need for credit rating checks or any collateral. The only thing they will consider is if you have any other unpaid payday loans that will nullify your current loan.
High Interest
The payday loans are very convenient. But they are very easy, which is their drawback. We all experience financial crises, but the situation is worse for people who are unable to regulate their finances. Those who are always short of funds every month, since they are unable to control their finances, this loan is highly convenient and the high interest on payday loans will dry out their money more rapidly. These loans carry interest of around $25-$30 per 100 dollars of loan for a 2 week period.
Can Be Revolved Over
Once the initial 2 weeks are up, you can roll it over. This allows you to get further extension of another 2 weeks and further 2 weeks if necessary. However the interest is added at the end of every 2 week period. So after 6 weeks, your $400 loan becomes $475, which is a very high price to pay for a little comfort.
In this case, a credit card may be a better option, but you have to weigh both the options carefully. With the ads for payday loans bombarding us, it is natural that it is first thing you will consider when you are short of funds. But consider other options before settling down for payday loans.