subject: Payday Loans Info [print this page] Payday loans get kind of a bad rap because of the high APR. Now, because of the credit card generation we live in today, payday loans exist and yes payday loans are part of the I need cash now generation. But, there is some good to payday loans. Lenders for payday loans realize that in this credit card world we often don't think to put aside an emergency cash stash because the credit card becomes the emergency cash stash. Lenders of payday loans also know that when this plan doesn't work anymore because of real emergencies or mistakes in budgeting and financing someone can come up empty-handed and really need a loan, but can't get a loan because of their credit score and bad decisions with credit cards in the past. And so, the payday loans lenders came up with the cash advance that is to be paid back within thirty days. That, my friend, is what payday loans are--short-term loans that are to be paid back within the next thirty days.
There can be several reasons why any one person would need cash right now instead of waiting another thirty days. So, if you can't wait because the sale will be over or the car can't take you to work on a flat tire and you can't just not go to work for the next thirty days.... When that happens there are payday loans to bail you out of your little emergency so that you can continue living life without having to wait for your next payday check to live your life.
Payday loans are just what the name says it is, a loan against your next payday. Payday loans have another name, cash advance. A cash advance is also exactly what it says it is, an advance of cash paid to you until you get your next payday check. There are other names for the cash advance loan and payday loans. Some of these names are fast cash, quick cash, etc. Some lenders offices of the payday loans bear the name of their product, payday loans, fast cash, quick cash, payday loan.
Payday loans are unlike any other loan in that the lenders can approve the loan applications in less than twenty-four hours. Lenders of payday loans don't have to check with a credit score and other credit companies about the past of the borrowers. Payday loans lenders simply make simple questions about the employment information of the borrower and the bank account information to do a wire transfer. With these two bits of information, payday loans lenders can snap their fingers and the application process of the payday loans is complete and approved.
It is true that payday loans have a much higher APR than regular, long-term loans. Now, if this same APR was applied to large student loans or a mortgage loan for example, the APR would be way too extreme in the amount of fees. However, a very small APR applied to a very large loan amount over a very long period of time gives the lenders enough to cover their expenses and make a living on the availability of their services. Now think of that same APR applied to a very small loan like payday loans, then the APR doesn't seem so high especially compared to the APR resulting fee of a mortgage and the resulting fee of the payday loans APR.
