subject: Get A Payday Loan Instead Of A Bank Overdraft [print this page] This could be a breakdown of some sort; either with your home or car. A bill that comes out of nowhere, sudden medical expenses or any other expense you did not account for. In any of these cases, you do not need to panic.
The answer is quite easy however. You can apply for a payday loan.Most people are unaware of the ease in which they can do this. A payday loan is an unsecured cash loan that does not entail a long approval process, neither do you need to fax any documents in order to get the loan.
All you need to do is to find the right loan and the lender, apply for the loan, and after that you can relax, knowing you are taken care of. The requirements are actually quite easy to meet as well.
First of all, you must be 18 years of age, or older, have a steady income of at least $1,000 per month, be a citizen in the country you are applying in, and have a valid checking account. The reason for needing the account is so that you can write a post dated check to the lender for repayment of the loan.
Of course, these days everything is done electronically so you can also authorize a post dated draft of your account when your loan comes due. The two most important things you should understand about payday loans is that they are short term and extending your loan past the original term can be disastrous.
They are only meant to be had until you receive your next paycheck. Extending your loan can result in major fees and mounting debt that is really hard to get out of. Most lenders do offer an extension plan but it comes with high fees, not to mention the interest compounding as well.
Payday loans are becoming more and more popular, especially in todays poor economy. This can largely be attributed to the advantages that they offer. The major benefit is that they are very quick to get, as you do not have to go through a long drawn credit check before you get an approval for the loan.
Also, you can apply for no fax payday loans in person if you want to, or else you have the option of applying for these through the Internet or via phone. The process of applying, being approved and getting payday loan money is extremely simple and quick, and following that the loan proceeds are deposited directly into your bank account within 24 hours.
So by applying for payday loans you can have the cash, more or less, instantly. Here is a comparison for you: A bank overdraft allows customers to overdraw their accounts, in order to meet emergency situations.
This sounds extremely convenient as you have to deal with the same entity and do not need to look at getting help from an outsider, in order to address your cash needs. If you take a closer look, you might find that this is not very beneficial. In most cases, the overdraft charges are much higher than the interest rate that you would have to pay for a payday loan.
In the case of a payday loan, if you need an extension to pay back the loan, there is a fixed rate of interest that you have to pay. In case of a bank overdraft, this rate can vary and at times is much higher than what you would pay for a payday loan.
So remember, though it might be more convenient to opt for a bank overdraft than to apply for a payday loan, this can also prove to be a more costly solution. Also, even though the idea of finding a payday loan company might sound difficult, it actually is not.
Good, legitimate companies will have a website and a strong customer base. Look for a lender who has been in business for at least five years. Payday lenders also offer other services like check cashing, and even secured loans if you wish to put up collateral for your money.
There are many advantages of having cash quickly, the most important is that of peace of mind.
