A payday loan is a short-term loan (lasting typically 60 or 90 days, or sometimes up to six months) to cover an unexpected expense or emergency. Generally, you must be employed at least part-time and not have any other outstanding payday loans in order to qualify.
The application process is fast and easy with the company you choose. You simply fill out a form online and they will ask for your bank account information, email address and the amount of money you want to borrow. Then they will run a credit score which means they will need your Social Security number, last 4 digits of your phone number and address. They also ask for your employment information such as your salary, employment status, employer’s name and occupation.
The main advantage of getting a payday loan is that it helps you maintain balance in your account. It also helps you maintain your credit score if you repay the funds on time and in full. However, there are flaws associated with payday loans too, such as high-interest rates and late fees that can lead to financial issues later on. Let’s cover some of them in this article.
How to Decide If You Want a Check Cash Payday Advance Loan
One of the best things about payday loans is that they are fast, simple, and easy to obtain. In addition, most experts advise getting a payday loan as opposed to other forms of credit.
Generally speaking, there are three features that you should examine before deciding which payday loan service provider to use: cost, convenience, and trustworthiness.
While this may seem like common sense for many people who need quick loans in emergencies, it can be difficult for others who may not know where to find reputable loan providers or how to compare their rates. The following article will show you how to decide if you should get a check cash pay day advance loan.
Interest Rates on Check Cash Paydays and debt spirals
Interest rates for these payday lenders can range from be as high as 400% for a 14-day loan. For example, if you take a $500 14-day loan, you may need to repay close to $600, assuming you don’t rollover your loan and accrue additional fees or more interest.
Each time you make a rollover your check cash payday advance loan with the lender, they will charge you with more fees.
In fact, over a quarter of payday loans are taken out more than 9 times before they are finally paid off. This can increase the amount of time it takes to repay the loan by months or years.
Watch out for red flags – predatory loans
A predatory loan typically has unfair, misleading, or unaffordable terms which can trap you in a cycle of debt. Payday loans can be seen as predatory because of their high costs that escalate quickly.
Some warning signs to look after include:
Unlike other loans, lenders do not check to see if you will be able to repay the loan. If you are unable to repay the loan and are forced to roll it over, there will be new fees each time which could eventually end up costing more than a typical loan.
If you’re considering taking out a loan, be sure to find out how the lender determines your credit score. If the provider doesn’t report to any of the main credit bureaus, it could signal that they only care about themselves and not you.
If you want more information about our payday loans, contact us at 844-311-6481.