Payday Loans, A Viable Option?

What are pay day loans?

Payday loans are short term loans pay day between the two. Payday loan is normally 14 days. As a check on the borrower's credit terms agreed security against the loan lender is my favorite. To date, the loan for the lender to recover the tax deposit check. On the next payment due date is usually the borrower in the day. Payday loan no credit checks are being made to give. For this reason, the borrower is not a FICO score. It does not have a bad credit history is important 'or are there any credit history, or declare bankruptcy.

Qualifications for pay day loans

Get a payday loan, the borrower must meet all these requirements. No exceptions.

You must be a U.S. citizen.

You need at least a 18-year-old.

a full-time just to be here for at least three months.

about you or have an active checking account or savings account.

of your after tax salary must be at least $ 1,000, or have a fixed income of $ 800.

The cost of payday loans

Payday loans carry very high price. $ 100 payday loan lenders typically charge anywhere from $ 15 - $ 25. It should be borne in mind that this fee is 14 days as a loan, it extends to only a few days. If we take into account the cost of each year, the percentage rate of charge (APR), an average of 391%, which is after all the standards are excessive. Under the law, is mandatory for the lender to the borrower to determine the GPL. Many lenders to compare the cost of payday loans from other forms of financing, but this comparison is the common denominator of all of them are very expensive.

When you use a payday loan?

must be submitted only in case of emergency. In light of the fact that the cost of payday loans out is very high, the resources should be a last resort. If it fills a good budget methods, and have a good financial plan can reduce the cost of payday loans on the basis of a loan. In addition, you will need to be sure that payday loans get paid on time. Payday loans should be rolled over or extended period of time you will find the borrower did not own the debt trap, if money can be easy to repay the loan.

Profiles of the payday loan borrower

on a typical payday loan customer between 25 and 40 years with an annual income of anywhere between $ 25,000 and $ 50,000.

about us list the report for the year 2000, the results of a payday loan borrower interest include:

22% of respondents have a bachelor's degree.

51% of respondents have a retirement savings plan.

In more than two-thirds of the savings account.

More than two-thirds of the annual income of at least $ 25,555.

Why payday loans are popular?

They are popular for those reasons, for example:

o credit checks are required. Personal checks, which are obligations to the lender acts as collateral.

Approval is fast. If all required documents are submitted, the application may loan approved in minutes.

documentation involved is simple. Generally one or two documents will be sufficient to explain the process and their loan obligations.

about the compensation process with no hassles. A check as security is made on the next payday of the lender. You could extend the loan for the subsequent payment of compensation. However, it is very expensive.

On availability. Payday loans are particularly appropriate in situations of emergency and provided the required amount of the little one is ready to carry a high cost loan.

Payday loans a viable option when you need cash, and it is necessary quickly. However, you will need to be careful who you work with your loan. If you don 't need the money immediately, you'll probably have a better solution.