What is a Payday Cash Loan?
A payday cash loan for a shorter duration, in which the borrower has to repay the loan amount on his next payday. This loan is also referred to as “Paycheck Advance “or “Payday Advance” depending on the demography. You can also call them as “Cash Advances” and can be obtained sometimes even through credit cards as a security document. Though many countries have announced a criminal action against people collecting more than 60% of annual interest, these loans are available in plenty.
There are many Payday Lending stores spread across all countries, particularly the US and they offer Instant Payday Loans to borrowers with the repayment due scheduled on the next payday of the borrower. To apply for a loan you may not need many documents, just a proof of income, your bank account details along with a personal phone number could suffice.
Payday Cash Loans have their own advantages that can be useful to you to know. They important ones are
1.You don’t have to fax or provide any hard copy of your personal or legal document.
2.The most important factor is that these companies never charge an application fee.
3.AS these loans are available online, you can apply for them anytime. They are available 24x7x365.
4.These companies are not bothered much about your past loan records, you can easily get a loan even f you have a bad credit record.
Payday loans are usually referred by many other names like Instant Payday Loans, No Credit check Payday Loans, Quick Payday loan, Low interest payday loan, Quickest cash Advance, Urgent Cash Advance, Online Cash Advance, Bad Credit Cash Advance Etc.
Payday Loans have their own drawbacks and a lot of critics. They are also termed as “Money-Drainers” of the people. Some critics say that these loans take advantage of the monetary need of the people to make money. They are also criticized for posting very attractive advertisements over the internet as there is no limitation for any sort of advertising that is done online. These loans are marketed highly through the internet via emails or advertisements through online search engines
The most dangerous part about payday loans is the trouble given by the loan companies if there is any default in the payback. Many loan companies get a post dated check (PDC) from the borrower and threaten to take a criminal action against him/her by presenting and bouncing the check.
Normally a charge of about 15 to 30% of the entire loan amount is taken as interest which actually accounts to around 375 to 750 percent when calculated annually. For example a borrower will have to give a PDC of $ 575 to get a payday loan of $500 which normally has to be repaid within a period of 14 days. This amounts to about 390% interest if calculated annually.
Certain important points to conclude:
1. You should decide whether your need for money is really an emergency or you can postpone it.
2. You should make sure to check up with all available options to get a loan that has lower interest rates.
3. You should make sure to check the loan company’s profile before opting to get a loan from them.
4. At last, if you borrow, then make sure you repay on time or try to extend the loan by paying the interest alone for another 14 days. (But this is not allowed in many countries as per law)