Payday Loan Companies
If you are seeking a short term loan which allows you to pay off a borrowed amount of money in a 120 day period or less, then you may want to consider turning to one of the many payday loan companies in the financial industry currently offering cash advances to consumers in financial need. If you find that you are in need of an immediate, temporary financial solution and you need cash right this minute, payday loan companies can certainly help you out. All you do is apply for the loan, prove that you meet the eligibility requirements and you can be approved in minutes. You promise to pay back the money with your next paycheck including all interest and fees. Since the approval process is easy and fast, you will find that payday loan companies are offering a popular form of financial assistance.
Requirements for Established Payday Loan Companies
Payday loan companies must adhere to laws regulating payday loan lending, and therefore specific requirements are established in terms of eligibility. You will be required to submit the requested documentation to prove where you work and that you earn a weekly income. You will also need to provide adequate proof that you have a bank account, usually a checking account, which has been active for at least three months. Credit checks are not part of the approval process, and no collateral is needed to apply or be approved for a payday loan. Interest rates will differ among lenders, and can be quite high, as much as 300 percent in many instances. In truth, one can expect to have about a 1/4 of a month's gross income to be sanctioned in relation to the payday loan applied for - this is done to improve the chances that the borrower will remit payment for the loan on time and in full. Post dated checks are written and pre-authorization to remove the funds is required if one is considering applying for a loan from one or more payday loan companies.
Payday loan companies will often purposefully advertise to individuals that need cash or have a serious need for immediate funds. Such offers may make mention of a smart payment structure that may appear that the individual get access to cash for free, which is not the case. Interest rates can quickly climb if the loan is not paid off on the originally due date and consumers can end up in deeper debt when they struggle to pay off the additional fees tacked on to late loan payments.