Learn The History Of Payday Advance Loans
You might have been hearing about the advantages of payday advance loans repeatedly
. The convenience that an emergency payday advance offers has also been widely recognized.
The questions that arise here are what exactly is a payday loan? How did the concept of an emergency payday advance evolve and when? What are the requirements and risks involved?
A payday loan put in simple terms is a small, unsecured, short-term cash advance that can help consumers to meet their instant cash needs until the next payday. A payday advance is commonly used to meet unexpected expenses that could arise from any situation.
For instance, medical expenses, car repairs, home repairs or to pay bills that are due before payday. Payday advance loans were created to help consumers in times of personal crisis.
A lot of times, these payday advances are also used to finance a holiday, purchase a gift or have a little extra cash to spend while on a holiday. Though this is not the best reason to get a loan of this kind, you can use the money for whatever you choose.
The biggest advantage of these loans is that these are paid back on the next payday and as a result you do not need to pay interest for a long duration. The fees you pay when obtaining a loan like this are not too high and the price you pay is for the convenience you get.
Going to a bank or other traditional lending institution can end up taking a long time, be harder to be approved, and may have a much longer term than you care to carry.
The concept of payday loans was introduced in the early 1990's. The main reason why these loans were introduced is the fact that the penalties on late payment of bills and the cost of bounced checks was steadily increasing.
This fueled the need for a solution that could help consumers to meet these expenses even if they were running short of cash. Also, the options for short term credit that were available at that time had extremely high costs that were not affordable by most customers.
With the acceptance of the advantages that these offered and the resultant increase in consumer demand, these loans became popular and are now easily available. In fact, now these loans are recognized by law and there are regulations that the industry has to adhere to. Availability of consumer protection has made these loans even more popular.
So, how can you get a payday loan? Well, the process is extremely simple and at the same time very quick. All that you, as a customer, need to do is, to find the payday advance that suits you the best.
As long as you have a regular job with a regular income, at least $1000 a month, getting an approval for these loans is not a problem. The next prerequisite is that you should have a checking account and should be over 18 years of age.
If you fit these criteria then all that you need to do is fill in the application form that is usually available online. Next, go through the terms and conditions and would have to agree to comply with these.
After that you would need to write a personal check for the amount of the emergency payday advance you are applying for and the agreed fee. This check would bear the date of your next payday.
In our fabulously technological age, if you choose not to write a check, you can authorize a post dated withdrawal from your bank account to repay your loan. Once these formalities are taken care of, the payday advance company would process your request and the pay day advance would be deposited directly into your account, usually within 24 hours.
Things to be aware of that pose as potential risks are not paying your loan back in time. Most lenders offer an extension program so you can increase the term of your loan, but they usually come with added fees and interest and this is just a trap that can take you down.
So be very aware of how you are going to pay the loan back. One other thing to be aware of is if there is an early repayment fee. Lenders don't make a lot of money on loans that are paid back in a just a few days. It might be worth it to you to pay it off early, or not.
These are things you need to discuss with your lender. Happy borrowing!
by: Jack Landry
Exceptional Cigars that Won't Break the Bank Know How Senior Reverse Mortgage Works & Meet Your Financial Needs Payday loans: Sort out fiscal difficulties with ease Payday Fast Loans: Fast Financial Help For Unforeseen Expenses! Quick Loans for Unemployed - Upholds Commitments Factors Influencing The Choice Of Sba Finances As Gas Station Loans Commercial Mortgage Loans Parameters Adopted By The Lenders What To Know About Gas Station Loans And Construction Loans Commercial Property And Stated Income Loans How To Get Them Approved What Mortgage Loan Is Right For You? Loans For Unemployed: Cost Effective Relevant Financial Assistance Quick Same Day Loans Swift Short Term Loan With In 24 Hours Installment Payday Loans Payback Money As Per Your Ease