Payday Loans Offer Instant Cash When You Need It
Who knows how it feels to get an injection of instant cash right when you need it
? I guess we have all had that experience in our lives, and it's possible we'll need it again some day. Borrowing money can be somewhat traumatic if there's an element of being turned down for a loan. Many people fear a loan application for just that reason. But obtaining instant cash from payday lenders is usually not accompanied by the same fear because most people with regular jobs and regular bank accounts will qualify.There are a couple reasons that instant cash from payday loan lenders is quick and easy to obtain, and both of them include the differences between single pay loans and installment loans as well. First of all, regular loans from banks and credit unions that can be repaid over time in installment payments generally require a high credit score and also collateral for a loan. Collateral means the title to a vehicle or a second mortgage on a home. This is how banks and credit unions secure their interests in the money loaned to customers for a period of time, usually measured in months, sometimes years. They have ownership interest in your collateral and that secures their loan during the period of loan repayment.
Instant cash, on the other hand, is loaned for very brief periods of time with no credit checks and no collateral required. A good credit score and equity in a vehicle or a home is unnecessary because the lender secures the loan against the borrowers' next paycheck instead. This system is entirely different than the system that banks and credit unions utilize.
Repayment of your instant cash obtained through a fast payday loans lender is authorized at the same time you complete a loan application. When you provide bank routing information so that the lender can deposit the loan funds wirelessly, you are also authorizing a wireless debit on the date of your next paycheck. That debit will be in the amount of your entire loan, plus interest and fees.
Understanding the difference between installment loans from banks and credit unions and single pay loans from payday lenders is a critical necessity. When people don't realize that they are signing loan documents obligating themselves for a large debit from their next paycheck they can face serious inconveniences on payday. That is not the goal, so it's important to make sure you read all your loan documents carefully before signing them and receiving your instant cash.
by: Leo Kingston