Everything You Ever Needed to Know About Payday Loans But Were Afraid to Ask
written by: yesterymuniko
When you need to get money the quickest and easiest way possible, a payday loan is the answer to your urgent financial needs. Payday loans are useful for people in dire need of quick cash. Availing of a personal loan through the banks takes a lot of time and paperwork. Sometimes, people cannot avail of such a loan because of poor credit ratings or the lack of collateral. Payday loans are handy in these instances.
Payday loans have higher interest rates than regular or personal loans. The interest rates can range from as low as $10 to as high as $40 for every $100 you borrow. The interest rates vary for each lending firm, so you might look at the numbers before you sign up for a payday loan.
The fees for payday loans can be calculated on a weekly or monthly basis. Many payday loans have interest rates that can reach three digits if compounded annually, so make sure that you are capable of paying off the loan on schedule.
Costs of payday loan:-
Usually a payday loan company charges 15 to 30 USD per $100 borrowed. So, if you borrow $100, you will have to pay 115 to 130 USD on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.
Maximum limit of payday loan:-
If you are taking a payday loan for the first time, you may get up to $500 for the first time. After you repay back your first loan amount in time, you can avail more than $500 when you revisit the company for another payday loan.
Think before taking a payday loan:-
1. You should keep in mind the APR factor of the loan before taking it. You should find the company which is charging a lower APR than its competitors.
2. You should take care about the privacy of your document and information. So, if the tendency of the company is to process applicant's information in an encrypted page, you should think that your information will not be licked out, and then you can proceed on.
Repayment of payday loan:-
The lender company will take the money off from your checking A/c on the date of your payday. You should be ready and aware about your payday and the amount to be repaid. If you fail to repay the loan on the scheduled date then you may have to ask the lender to rollover your loan amount.
