Payday loans are small dollar loans where money is provided to the applicant for a short period of time till the day the next paycheck arrives. The money involved here is usually between $300 and $1500 and it is for a couple of weeks. This is why payday loans are also referred to as short-term loans or cash advance loans – there are many names for it. These loans won’t solve your long-term financial situation, but are great to solve temporary financial emergencies.
There are many other advantages of payday loans, apart from obviously helping people solve their immediate financial emergencies by providing money when they need it. For instance, these loans are very convenient, faster than other loans, and the eligibility checks are not as rigorous as regular conventional loans. This is why payday lending has become so popular in the United States and in many other parts of the world.
Most people refer to them as a payday loan, which is the general term for these lending schemes, but did you know that there are quite a few types of payday loans? There are many similarities between them, but there are a few differences as well. Let us investigate in more detail.
The Many Payday Loan Types
The different types evolved over time with a common objective – the help customers get approval and get the money they need as quickly as possible in an emergency. Here are the most popular types of payday loans.
Payday Lending Stores – These are the physical stores that you will find almost throughout the US. Just walk up to the store and say that you need a loan. Tell the amount, submit the information, and you are through. Processing will begin almost immediately. The money will be credited to your bank in 2-4 business days. The advantage of this payday loan is that, you get to meet the lender personally and understand the kind of person he is. You also know where to reach in case you have to communicate later for whatever reason.
Online Payday Loans – This is all for convenience and privacy. You can apply for the comfort of your home and nobody will ever find out that you are a little short of cash. Just visit the website of the payday lender and make your application online. Fill out the small form and submit all the necessary information. You can apply any time of the day and from anywhere as websites are open 24×7. But be careful while choosing the lending company because you are not meeting the business face to face.
One Hour Payday Loan – In a real emergency you cannot wait because the money can be really handy. This payday loan gives you the money in just 1 hour after your application. Just make sure that the details you submit are accurate and true. This is very important because the payday lender won’t approve the loan if he suspects that you are trying to get the money with wrong information or are posing as someone else. The information you submit should be valid, and you have to meet the requirements of the borrower. If everything is in order, you can have the money in your bank in an hour, provided your bank can accommodate this fast transaction. However it works only during when the banks are open and everything is perfect in your application.
24 Hour Payday Loans – The lending business will start processing your application and the money will be deposited to your bank account usually within 2-4 business days. This is what normally happens. But with 24-hour payday loans, it is deposited within 1 business day, so it is a lot quicker. As opposed to this, traditional banks and lending institutions may take a week, and sometimes even up to a month to give you the money you need as a loan. This is why these are not practical options in an emergency. You should think of trying 24-hour payday loans if you need the money really quickly. If you apply with us and if approved our lenders will also give you a loan in 24 hours – not applicable on weekends and holidays.
No Fax Payday Loans – This is also very convenient because you don’t have to fax any papers like, for instance, your pay slip that proves the amount you are making every month. All you have to do is just enter the amount online, and be truthful about it. This particularly helps those who don’t have access to a fax machine. Apart from the fax part, everything else about the loan is the same. It is assumed that the information you have submitted is true and accurate. But remember, the lending agency has a way of finding out. So be truthful always.
30-Day Payday Loans – Most payday loans anywhere in the country are for around a couple of weeks. But there are some instances where a few lending companies agree to offer the loan for a longer period of time. It can be up to 30 days, and in some instances, even more. For instance, let us assume you had a major expense just after payday, and because of this almost all the money you made had to go towards payment. So you are left with virtually nothing for the rest of the month. Take a payday loan for the remaining 25 or so days of the month.
Military Payday Loans – Many payday loan companies have special plans for those in the military service. Often, the terms are friendlier, because of the kind of service they offer, including the fee and the rate of interest. You can borrow up to 40% of your monthly income, based on your rank. However, remember, there are stricter rules for military personnel in financial matters. The Uniform Code of Military Justice article 123a says that people in the military who don’t meet their financial commitments can be confined, transferred, court marshaled and even discharged. Those based in the US, will have the money in their bank within 2-4 business days. Those based overseas can get it through Western Union almost immediately. Wire transfer takes 1 business day.
What to Check Before Taking a Payday Loan
A payday loan is a great help in many situations, like for instance, when you need the money to pay the utility bills, make urgent car repairs, you are joining a new job and is a little short of cash, you are self-employed, you need the bond money to pay for the perfect property, and for urgent and unexpected medical expenses.
But don’t be hasty when applying for the loan and receiving the cash. You need to do a few checks before finally agreeing to take the loan. Always check the following –
1. Check the terms and conditions always before applying – Yes, you want the money quickly, but make sure that you read the terms and conditions before finally agreeing to take the loan. Check for the fees, rate of interest, repayment period, and such others.
2. Automatic renewal – Some lenders will renew your loan automatically. Ideally you want to repay on the due date and get out of debt. So make sure that there is no automatic renewal with your loan.
3. Check the law in your state – Always find out what is the payday lending law in the state of your residence. It is different in many states of the US. There are caps on how much fees and interest can be charged. Make sure that the lending company isn’t charging more from you.
4. Contact information – Make sure that you can reach the payday lender if you need to. This is particularly important if you are applying online. The website should have contact information published. Call up and verify. It is always good to talk to the lending business before taking the loan.
A payday loan is the most practical option to get the money when you need it in an emergency or when you are a little short of cash. This is why payday lending has become so popular in the United States and elsewhere in the world. Just make sure to check everything before taking the loan and pay it back on time. Everything should be alright. Remember, there are many names and types of payday loans. There are many common elements, but there are a few differences as well. Choose the best one for you.
Thank you for visiting our website. Hope we helped you get a loan.