subject: Ample Cash With Payday Loans [print this page] Payday loans provide short-term emergency cash to consumers that need it. These cash loans are approved quickly with no credit check required and can be wired to your bank account in as little as 1 hour. When used wisely, payday loans are a viable way to get some extra cash to make ends meet between paychecks.
A payday loan is similar to paycheck advances offered by some employers. Not all employers provide paycheck advances any more however, creating a need for short-term cash from other sources. Instead of approaching their employers to advance part of their paychecks, consumers can visit a payday lender to borrow the cash until payday for a small fee, usually around $20 per $100. Lenders can offer up to $1,500 depending on state laws. Most payday lenders approve cash amounts based on the amount of your next paycheck. If you earn $1,000 in a month, a payday lender might approve a cash loan for the full $1,000 you'll earn or less. Some lenders restrict cash amounts to a smaller percentage of your monthly income.
Studies show that consumer payday loans are on the rise. Payday loans are convenient, short term cash loans that are often criticized for high interest rates. Since these loans are provided by independent lenders, their interest rates are higher than other consumer loan products to cover the additional lending risk.
What makes payday loans so popular? First, they're easy to borrow. Consumers who need cash can go online to find a lender or stop by their neighborhood lender and walk out with the money they need. Online payday lenders can wire cash in 1 hour to a borrower's bank account. These cash loans are also approved without a credit check, making them easy to qualify for.
The one caveat is the interest rates attached to payday loans and cash advances. Because independent lenders are at higher risk for losing money from customers who don't repay their loans, their interest rates are higher than traditional banking institutions. The average annual interest on a payday loan can be as high as 400%. These interest rates are often less expensive than the alternative of consumers overdrawing their bank accounts and shouldn't pose a problem as long as the borrower can repay the loan on payday.
Consumers contemplating an emergency cash loan should remember to take these interest rates into account before deciding on an amount to borrow. Remember that interest is added to the amount you borrow, which will be deducted from your paycheck when it hits your bank account on payday. Consumers who are responsible with their loans and interest shouldn't get into trouble with their payday loans and cash advances.
Any US consumer with a bank account and a reliable income can qualify for a payday loan. The lack of a required credit check makes these loans attractive for consumers with bad credit. As long as your bank account has a positive balance and you earn a stable income, you instantly qualify for the cash you need.
