How a payday loans works
You may be surprised to learn there are alternatives to payday lending and certainly to the beguiling online payday lending sites. Use your credit card for which you'll pay a much lower rate than a payday loan.
Ask a friend or family member for a loan.
Realistically speaking, if you had good credit or a reasonably well-off family member, you would probably not be in the market for a payday loan. Searching for a payday loan online may be your best option for finding a reasonably low interest rate. If budgeting does not work for you, consider joining a credit union before your next crisis occurs. Credit unions now offer a nifty device called a Salary Advance Loan Program. State Employees Credit union in North Carolina has one of those. Take ACCESS Federal Credit Union in New York state for instance.
Everything You Ever Needed to Know About Payday Loans But Were Afraid to Ask
A payday loan is a small short term loan you can use to cover expenditure until your next payday. A payday loan is an unsecured loan, so it is not dependent on collateral, such as you owning a house or car etc.
Payday loans can provide a useful solution for short term cash flow problems.
Who can apply for a Payday loan?
How do you get a Payday loan?
Once you have submitted your application you should hear back from the payday loan provider within minutes. Along with the loan agreement you should also be sent loan conditions. These loan conditions should outline your rights under the Consumer Credit Act 1974 along with details about repaying the loan, cancelling the loan and the use the personal information you supply when applying for the payday loan.
How do I repay the loan?
You will need to repay the loan amount and the interest accrued on the repayment date as specified in the loan agreement. The repayment date is usually your payday, hence the name payday loan.
Some companies may charge you additional fees for extending your loan, you should check if this is the case before you sign your loan agreement.
Regulation of Payday Loan Companies
Properly regulated payday loan companies must adhere to strict laws governing the finance industry.
What are the benefits of a Payday loan?
The application process is very simple, it takes just minutes to apply for a payday loan and you do not have waste time posting or faxing documents to the payday loan provider, as you would with other more traditional high street loans.
Poor Credit History
Payday loans are available to people with a poor credit history. As long as you fulfil the application criteria you have a good chance of obtaining a payday loan. Use of the Loan Money
You do not have to tell the payday loan provider what you need the payday loan for. There are no upfront costs associated with a payday loan. Why does the APR appear high on payday loans?
The APR applied to payday loans appears at first glance to be high. The APR calculation was not designed to apply to very short term loans such as payday loans.
