Advance payday loans are a type of short-term cash loan that allows you to borrow money on the day when your paycheck arrives. These loans have a typical interest rate of around 300% and a repayment term of 14 days.
A lot of people use this type of loan just once or twice, but some of them might find themselves needing it more than twice in a year. It’s not hard to understand why – sometimes unexpected expenses happen and you need quick money for covering them.
In case you are planning to get an advance payday loan, be aware of all the facts related to these financial instruments. This article will help you learn about the most important details concerning such loans.
Facts Concerning Advance Payday Loans
Let’s start with describing the process of obtaining an advance payday loan. First, you should fill out a form for submitting application for the loan at one of the approved lenders. After receiving the approval, you will receive a loan agreement that contains information about terms and conditions of the loan. The lender will ask you to sign the document and send it back to him. Then, you must submit the required documents (ID card, bank account statements) to prove your identity.
After submitting those documents, the lender will transfer the amount of the loan into your bank account. As soon as you get the money, pay off the loan in full by making payments according to the schedule specified in the contract. If you fail to make any payment, the lender can take legal action against you.
There is no limit on the number of applications you can submit per month, however, you cannot apply more often than twice in a year. Moreover, there are limits on the total amount of money you can obtain from the same lender during the whole period of his activity. For example, if he has already issued $10,000 in advance payday loans, he cannot issue another $10,000 within 12 months after that.
The interest rates charged for an advance payday loan depend on the amount of the loan. Generally speaking, the higher loan amount, the lower APR. However, you should also know that there are some cases where lenders charge much higher rates for high amounts of money borrowed.
It’s worth mentioning that the majority of payday loan companies work through licensed brokers, so they may charge additional fees for processing and managing the loan application. You should not forget about the fact that the broker charges a fee for every client he brings to the lender. That way, you might end up paying a significantly bigger sum than the actual cost of the loan.
Another thing you should consider when choosing a lender is its reputation. There are many websites offering free consumer credit reports to their users. They allow you to check whether the lender is reliable enough to provide you with the desired service. If you don’t feel comfortable with the results, you can look for other options.
One of the biggest advantages of getting an advance payday loan is that you do not have to wait long before getting the money. In most cases, you can get it on the next working day. However, the borrower usually gets the amount of the loan on the day when his paycheck comes.
If you want to avoid late payments when applying for a payday loan, you should keep the following tips in mind:
- Make sure to get paid on time.
- Keep track of your spending.
- Don’t spend more than you earn.
In order to get better control over your finances and avoid taking out an advance payday loan again, try implementing a few simple changes in your daily life. Make sure to stick to them until they become habits.
You can get an advance payday loan online and save yourself a lot of hassle. Online payday loans tend to be cheaper compared to traditional ones. The process of filling out online forms and submitting necessary documentation is very fast and straightforward. You can easily get an advance payday loan online without leaving home!
Another advantage of using online payday loans is that you can get instant access to cash even when you don’t have a checking account or ATM card. Another option is to withdraw money directly from your savings account.
However, be careful when opting for this solution. Make sure you are familiar with the rules and regulations that govern withdrawing funds from your savings account. Some banks may require additional procedures like contacting your bank manager to approve the request and providing proof of income. Otherwise you may face penalties for violating banking laws.
We hope that the above information will help you decide whether you should get an advance payday loan or not. If you are still unsure whether to apply for one or not, we suggest reading our reviews of different payday loan lenders.
If the person wants to get the detail of the payday loans then they can analyse the options of online loans offers by Money-Wise.org. If the complete concept of people will be clear then reaching the goals becomes an easy option for people. The main motive of people should be to take the loan from the platform that will give them good results.