Low Fee Payday Loan
As the name suggests, a low fee payday loan is one with low finance charges. The good news is that not all lenders charge the same rates. You cannot always expect low fees as some lenders have strict regulations in place for higher risk loans such as bad credit, number of outstanding loans, debt-to-income raito, etc. If you think a lender is trying to overcharge you, do not confirm anything. You are never under any obligations until you agree to the terms. This gives you more opportunities to find loans at a lower cost. Interest and fee examples in the article are for illustrative purposes only.
Some payday lenders have finance fees that range as high as 782.14%. If this is the case when you apply for a payday loan, you are better off applying for a credit card. However, if this option is closed to you because of your debt load or bad credit ratings, then you should seek some form of debt counseling. Your bank or your debt counselor can assist you in getting a debt consolidation loan or even a personal loan to help pay off your current debts. Even if you have bad credit a loan of this nature from an ordinary lender will only carry an APR rate of 26 - 35% depending on your state's usury laws.
You can borrow from $100 to $1000 through a low fee payday loan. It is possible you might find a lender who will approve a loan for a higher amount. On average, customers applying for a low fee payday loan are looking to borrow between $200 and $500. Getting approval for this type of loan does depend on several factors, such as the length of time you have been in your present employment and the length of the term you want for the loan.
How long will it take for me to receive the money once I am approved?
Once you receive approval for the loan, you will see the money in your bank account within one business day.
Are there any credit checks?
Some lenders might not run a traditional credit check but might still run other checks such as Teletrack and/or TeleCheck.If you are turned down for a payday loan because of a bad credit rating, you can still get the money you need by applying for a loan with a lender that deals in bad credit loans. You can also get a bad credit personal loan at your bank.
What is the usual term for repaying a payday loan?
Usually, you have to repay a payday loan within two weeks. If you need to extend the term beyond that time frame, most lenders will do so, but for an additional fee. There are also lenders who will only deduct the fee and allow you to extend the loan. However, you must be aware of the fact that for each extension, you will have to pay a new fee until the loan is completely paid in full.
Are there any requirements and restrictions?
Low fee payday loans are for anyone as long as you meet the requirements. For most lenders in the United States, borrowers must be 18 years old or over, have full-time employment earning a minimum of $1000 per month and hold a valid checking account.
You can use the money you borrow through a low fee payday loan in whatever manner you wish. It is recommended that you use payday loans for emergencies only because of the high cost in using this service. Traditional loans work best for long-term situations.
What are the fees and interest?
Unlike bank loans, payday loans do not carry an interest rate. You pay a finance fee for each transaction. Depending on the lender, the fee can range from $10 to $30 for every $100 you borrow. The finance fees for low fee payday loans are in the lower range. If you are a first-time borrower, you may enjoy a low finance charge, but fees will increase if you continually extend the loan. A finance charge of $30 per $100 borrowed is equal to an APR rate of 782.14%.
How many outstanding payday loans can I have?
The policies on allowing you to have several payday loans at the same time depend on the company. Some will allow this practice while others will tell you that you have to repay one loan before you can take out another, which is usually the case.