Introduction
The effects of the 2008 recession have made it more difficult for borrowers to access credit. Fortunately, credit lenders are very adaptive and accommodative to the financial needs of borrowers. One of the innovations that has made easier for individuals to access credit is pay day loans. They are accessible to almost everybody, regardless of their credit history and are designed to be easily accessible. Here are some the facts that make up day loans pay and how you can go about accessing one.
History
How it Works:
Day loans pay are short-term cash loans, which are lent on the basis that the borrower can guarantee payment for a loan through a personal check drawn by the borrower or electronic access to the borrower’s bank account. The personal check drawn by the borrower should be able to cover the amount borrowed plus financing charges. The lender will hold on to the personal check until the payment date on the loan and finance charge is due. Once the payment date is due, borrowers can either choose to allow the check to be deposited, redeem the check and pay with cash instead or just pay the finance charge and roll the loan forward.
Features
Payday Loan Terms:
The size of payday loans usually range from $100 to $1,000, depending on the regulations of the state you live in. The average term for a pay day loan is usually two weeks, with an annual percentage rate of around 400%. Some lenders will be willing to extend their loan amounts, up to $1,500 depending on the lenders qualification criteria.
Qualification Requirements
In order to access a day loans pay, all a client has to do is to open a bank account, have a steady source of income and provide some identification. Most lenders will not use stringent qualification criteria on the borrower’s credit history, since the loan is virtually guaranteed by the borrower’s paycheck. This makes them perfect for people with a poor credit history who have been denied credit by traditional lending sources.
Tips and Comments
Payday Loan Lenders
Pay day loan lenders are accessible from a variety of lenders, such as payday loan stores, pawn shops and cash checkers. You can also access them through the internet or through their toll free numbers. They are always ready to receive an application, and will quickly process an application as long the client meets all their qualification criteria.
How to Choose a Payday Loan Company
Different day pay loans lenders will utilize different lending criteria while providing payday loans. Here are some the major factors to consider while searching for a payday company:
- Determine the amount of money you need to borrow and whether they are within the limits of your payday lender.
- Perform an online comparison of payday lenders, with their terms and costs in mind.
- Make sure to read through the terms and conditions tied to the loan, to ensure that you can abide by them.
- Borrow only what you can afford to pay, to avoid defaulting on your payments.
