No matter how successful you are, we all need a helping hand from time to time. Whether it’s our vehicles, rent or a health emergency that we don’t have the funds for, we can run into financial problems that can stress us out. When we can’t make ends meet and need some extra cash what options are available to us? A lot of people turn to payroll loans to help ease their economic strife and get back on track. In this article, we’ll delve into the good and bad related to these loans.
What Are Payday Loans?
Payday loans a.k.a. a cash advances are a short-term unsecured loan that usually ranges between $500 – $1,000. The loan is connected to the borrower’s payroll, hence the name payday loan. Some loans can be based on a predetermined amount of credit (credit card). The loan is to be paid by the borrower’s upcoming pay date.
The borrower is required to fill out a postdated check that has the amount of the loan plus all fees associated with the loan. If for whatever reason the borrower can not pay the agreed-upon amount back, the lender can cash the check.
What Do You Need To Get A Loan?
The borrower must have proof of employment (pay stubs and/or bank statements) and show an established payroll.
How Do I Acquire A Loan?
It is a very simple process. You can either visit expertpaydayloans.com or you can go online to a website and fill out a form. Online approval is instant and usually shows up in your account within an hour of approval with no credit check.
What You Should Know About These Loans?
First and foremost, before engaging in a cash advance loan, do your research. Laws vary from state to state concerning these loans. Companies are allowed to charge anywhere from $10 to $30 for every $100 that they lend the borrower.
If the event that you’re short on the funds and fail to pay back your loans and the lender redeems you prewritten check you’re in for trouble. You can acquire fees from bouncing a check, as well as incur more fees including a higher interest rate.
With online loans, the loan is transferred via direct deposit and all transactions are handled electronically by the borrower’s next pay date.
What About Interest Rates?
You pay an interest rate that is determined according to how much money you borrow and the amount of time associated with that money. But, again, do your research because this varies from state to state.
To Loan Or Not To Pay Loan
The bottom line with these types of loans is that you must consider the importance of your loan and the finance charges that you’ll incur for that loan. If you find yourself in a bad economic situation and this loan can get you out of it, then use it. But these loans are not something you want to do regularly.