A payday loan or cash advance is basically a short term, cash advance on the borrowers next paycheck. These loans are sought after to help cover emergency expenses that pop up prior to a payday. Loans range anywhere from $100 to $1,500 and are to be paid back by the borrower on his / her next payday. Interest rates are high and are often around $15 per $100 that has been advanced.
When applying for a payday loan you typically provide the lender with a photo ID, a paycheck stub and a postdated check to pay back the amount when it is due. Companies offering payday loans lend without a credit check and require that you be employed with a checking account. The borrower will receive a loan agreement with the terms and conditions of the loan.
Sometimes you can make arrangements to pay the loan back over several pay periods. This will cost you more but may be necessary depending upon your budget. The benefit is that you receive money fast and the requirements are minimal.
Some alternatives to payday loans are to look to a relative, a credit union or a personal loan. Another idea is to have a credit card with line of credit that will allow quick cash.
We don't recommend payday loans, as it is easy to keep borrowing and get further in debt. A payday loan should really be a last resort and obviously emergencies occur and you have to act fast. If you do apply for a payday loan review the terms and conditions and pay the loan back fast. Per our customers request we have a list of some of the top companies listed on our site - be responsible.
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