These are the unsecured but small loans that are used to cover a borrower expenses with a high rate of Interest by signing a post dated check of the amount borrowed with the processing fees/Financial charges etc.
Loan terms:
- Loan size varies from $100 to $1000
- The average loan term is usually a fortnight (2 weeks)
- Finance charges varies from $15 to $30 (depends on amount borrowed per two week)
- APR varies from 390% to 400%
Eligibility:
- You must be 18yrs of age.
- An Identity proof and a valid functional account.
- You should have a constant income flow and your account must show a constant flow of money within last two months.
Why short term loans are popular?
- It’s an instant solution; you get money (once you complete formalities) within 15 minutes to 24 hours directly into your account.
- Your financial information remains private.
- Credit checks are not mandate.
- It’s an unsecured loan hence you need not worry about your assets.
- It could be filed online.
- Money will be automatically withdrawn at the next payday.
- Military personnel’s and immigrants could apply for it without any hassles.
Precautions:
Overdependent on such loans would lead you no where. It is only and only for emergency financial crises. They have high rate of Interest plus if you are looking for a huge loan, payday loan is certainly not the right choice!
Alternatives to pay day loans:
- Seek advance from employers.
- Cash advances from credit cards.
- Go for a secured loan.
- Credit union loans with stringent terms.
Risks involved:
- Failure to repay amounts to bounced check fees from the lender and the consumer’s bank.
- Consumer may lose their account if it has a history of Bounced checks.
Bad credit history people can also apply for quick cash payday loans to pay off the next salary of the borrower not lender does not offer much risk for the loan. Both good and bad credit people need proof of employment and provide income to the lender if they needed convincing timely return of the loan.
First you need to compare different fast cash payday loans for interest and costs, and after selecting the appropriate lenders in order to qualify him then and there to fill on-line application of the core of the lender’s loan and personal information. The loan will be approved within one day of application.