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Instant Payday Loans

02-May-2013

Instant payday loans are usually more about finding a quick way to get money and not worrying as much about finding the cheapest lender. That obviously rules out finance companies and other slow moving lending institutions because they follow an application and credit check procedure that can hours or even a day or so in some cases. Assuming that you have no cash to access on a credit card and no friends or family who can offer help, then the only other answer is probably a pay day loan but this should always be your choice of last resort. Be careful with Payday loan companies as they can be brutal to deal with. Before you sign any lending agreements, make sure you take a few minutes to ask yourself a handful of basic questions. Remember, getting a finance company loan and getting a payday loan is not the same thing.
How do Payday Loans Work?
While there are variations among lenders, payday loans generally offer a small loan in a short period of time without the need for a credit check. Instead, payday lenders rely on borrowers who have jobs with at least a minimum salary, as well as checking accounts. In exchange for taking the risk on these types of loans, lenders charge very high interest rates. Borrowers are required to pay back the loan, plus interest, by the time they receive their next paycheck. If you can pay back the entire amount, the loan process ends. If not, there generally is a fee for another period of time to pay off the loan. Although many borrowers pay the most attention to the Truth in Lending page that spells out the interest rate and payments, the following paragraphs of legalities can be just as important. This is where you’ll discover if the quick loans offered by your lender carry any undesirable features. For instance, you may accept a loan with a high interest rate because you plan to pay it off in a short period. If your contract has a prepayment penalty, your good intentions may be for nothing.
Apply for Payday Instant Loans
·    Personal identification. A driver's license will usually be sufficient.
·    Proof of income. The amount varies somewhat among payday lenders, but you should expect the requirement to be about $1,500 a month. Direct verification of your employment or other income sources may be required.
·    Proof of Residence. You will need to prove that you live where you say you live and that may include direct land lord verification.
·    Checking account. This is a crucial part of the process. If you are approved, the loan can be directly deposited into your checking account and that is one of the ways payday lenders speed up the process. Some companies will accept a savings account, as long as it can take direct deposits. Also, many payday companies will want you to have held a checking account for at least 3 months.

How Much Do Payday Instant Personal Loans Cost?
There is no universal cost for a payday loans, but you should expect a very high interest rate. That's the reward payday loan companies receive for dealing in relatively risky financial transactions. These loans, which usually are no more than $300 to $1,000, cost as much as $29 per $100 borrowed. And some companies will include a loan or processing fee on top of the interest rate.  There are also other payday loan lenders that require a non-standard payment schedule that makes it difficult for borrowers to make on-time payments. When you receive your payment quote, make sure to clarify with the lender how often they expect to receive payments. Paying $200 each month may be reasonable within your budget, but paying $50 every Friday may not mesh with your cash flows. While the majority of lenders are honest professionals, there are some who prey on those who need fast loans and use increased payment frequencies to collect late fees. Understand that your interest rates can be as high as 400% in some cases.
What’s the Time Frame for Payday Instant Personal Loans?
Here's the rub with many of these loans. While it is common to see advertising for 1-hour loans, it often takes a 24 hours for the loan proceeds to be directly deposited into a borrower's checking account following approval. What takes an hour or less is the approval process.

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