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Payday loans can be found just about anywhere. They go by
different names, but are really the same thing. Most towns have
them, and you probably know that Internet advertising has a lot
of ads about them. You may have wondered, though, if you should
ever need one, just what may be involved. Here is what you need
to know about payday loans.
One of the best features about a payday loan is that just about
anyone that makes more than $1,500 each month from your
employment can qualify. Some will only require you to make
$1,000 per month, but that may also mean a smaller loan, too.
Besides that, you will need to have worked there for about six
months, and then you really should have no problem getting a
payday loan.
You do not need to be concerned about your credit score,
either. They will not even check it. So you can have any kind of
credit problem and it will not effect your ability to get your
payday loan.
The way it works is this – you will need a checking account so
that they can deposit your money directly into it. This way it
offers them some protection, so they will require it. Also, when
you apply, you will need to write a check to them for the amount
of the loan, plus the interest. It will need to be postdated to
when the loan repayment is due, which will be in about two
weeks. You could sign a statement that will allow them to take
it right out of your checking account on the day it is due.
The amount of money that you can get will usually be somewhere
be around $1,500 max. Your first payday loan, however, will be
limited to around $400, till you prove you will pay when it is
due. Then, this amount will be raised with each one until you
are allowed to get the full amount possible.
On the day that the loan is to be paid, all you need to do is
to go to the lender and pay for it by cash, if you want, and
they will give you the check back. Or, if you do nothing, then
the check that you approved will simply be put through your
bank, and the money withdraw.
The interest on a payday loan will be high. It does seem to be
coming down some, but you can expect it to be much higher than a
regular loan, and in many cases, much higher than that of a
credit card. It will usually be anywhere between 15 and 30%.
A payday loan can also be rolled over. By paying the interest
on the date that the loan is due, you can roll the loan over
until the next payday (usually two weeks). This does mean that
you will be charged a duplicate interest rate, though, so you
would not want to do it unless absolutely necessary.
About The Author: Joe Kenny writes for the UK personal finance
site http://www.ukpersonalloanstore.co.uk/ and also for US
residents, http://www.rebuild.org/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=166926
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