Cash Advance Payday Loans
There are many companies that offer cash advance payday loans and most of them can be found on the Internet. The cash advance payday loans are short term, quick turnaround loans that are intended to be used for emergency purposes.
The cash advance payday loans are short money, high interest rate loans that can be obtained quickly and used when emergency cash is needed. The applicant must be at least 18 years of age, employed with a steady income meeting the minimum salary requirements of the lender and have a bank account that accepts electronic transactions. Some lenders also require the applicant’s paycheck be deposited to the account by direct deposit.
Most lenders who offer cash advance payday loans do not check credit, making such loans a good choice for those with credit issues. However, keep in mind that even though lenders do not check credit, most report late payments and defaulted loans to the credit bureau. Those credit negatives may not have any bearing on a cash advance pay day loans, but they will an impact on credit checks for other loans, credit card application, employment applications and anything else that requires a credit check.
Cash advance payday loans are subject to interest rates between 15 and 35%. That equals $15 to $35 per hundred dollars borrowed. That makes the loan very expensive and if the maximum amount of such loans is taken out, the payback is astronomical. Critics of payday loans often take the lenders to task for the rates charged, but the few banks that offer similar type loans often have higher than normal interest rates.
The payback time frame for such cash advance payday loans is very short, usually between 7 to 30 days. The payback date is timed to coincide with the applicant’s employment pay period. For example, if the applicant is paid weekly, the payback is the very next week. If the pay period is every 2 weeks, the applicant pays the loan back in 2 weeks.
Most lenders do not offer installment payments, but that can often be negotiated as a condition of repayment. Lenders are interested in getting their money back with interest and would rather get smaller payments in installments than have to chase the applicant for money. Some lenders offer installment payments rather than one lump sum payment anyway; realizing smaller payments are easier for most people to handle. Paying back a loan in smaller financial increments is a little less overwhelming than making one giant payment at the end of the loan term.
Some lenders who offer cash advance payday loans allow the loan to be repaid early, but do not offer a rebate on the interest. Lenders who do allow early repayment will assess an early repayment fee equal to the amount of interest that would be paid for the duration of the loan. If the loan was paid back 5 days early, the early repayment fee would be equal to 5 days of interest.