Guide To Pay Day Loans
When a borrower needs quick access to cash, pay day loans are one of the most commonly used types of loans in the industry to fulfill this purpose. For those who are unfamiliar with payday loans, there are a number of factors that must be understood before a loan is taken out. Here are the basics of payday loans and what borrowers should expect when getting one.
Payday Loan Basics
With a payday loan, a borrower finds a payday lender and then fills out an application. These types of lenders can be located online or in local markets in brick and mortar stores. The application process is usually pretty simple. Typically, the borrower will fill out a one-page application that asks for some personal information to identify him. The borrower can request a certain loan amount. The amount of the loan will largely depend on how much money the borrower makes on a monthly basis.
After the borrower has applied for the loan, the lender will evaluate the application and verify his employment. If employment can be verified and the borrower is in good standing with the lender, the loan can be approved. At that point, the lender will wire the money for the loan to the applicant's bank account.
Repayment Terms
Once the money has been wired to the bank account, the borrower will have a certain amount of time to use the money before it must be repaid. These types of loans are generally very short-term in nature. Most of them run somewhere between two and four weeks. In some cases, borrowers may be able find a lender that will give a loan for up to six weeks. Typically, the repayment terms will be spelled out in the original loan agreement. The borrower will agree to repay the money that was borrowed in addition to a fee. It could be a flat fee or it could be based on the amount of the loan.
If the loan is not repaid according to the terms of the agreement, the borrower can sometimes get an extension on the repayment. This can provide the borrower with additional days or weeks to come up with the money. In this situation, the lender will charge a late fee or an extension fee, based on the terms of the agreement.
What to Look For
When applying for this type of payday loan, the borrower should look for certain terms on the front end. The borrower needs to know what interest rate he is paying for the money that he's borrowing. He should look at the different fees that the lender charges for this type of loan. In many cases, the lender will charge an application fee, a funding fee, late fees and possibly some other fees along the way. These charges can really add up, so it is important for the borrower to review the terms before signing the agreement.
Considerations
Payday loans represent a very simple way to get access to fast cash. This type of loan can be used to pay for repairs on a car, to pay the bills until payday or to pay for an emergency plane ticket to see a loved one. The lender doesn't care how the money is used as long as it is repaid by the due date.
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For more information about online payday loans, visit our website at http://www.paydayadvanceloanscenter.com
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