payday loans in the united states

Payday Loans

Payday loans are unsecured, short-term loans for those unexpected expenses. If you have an immediate need for cash, payday loans can help you bridge the gap until your next payday. Since the money is deposited as cash in your checking account, it can be used for anything from paying utilities or rent to sudden emergencies. Payday loans can be obtained in a store around the corner or through online companies with applications right on their website.

Qualifying

It is usually much easier to qualify for payday loans than for more traditional types of credit. These lenders do not check your credit rating at all, so bad credit or even bankruptcy will not keep you from qualifying. As long as you are over 18, have a job and a checking account, and make a minimum amount (different for each lender) per month, you can receive a cash loan in very little time. No collateral is required. The application process is free, short and simple and you will generally receive an answer within hours. Funds are placed in your checking account electronically, usually the next day.

Maximum amounts

By law, the maximum amount of paydays loans can vary between $100 and $500. The actual loan amount that you receive will be based on your income.

Of course, the lender will charge a fee for their service, but these fees cannot exceed the maximum amount set by the government. Check out several companies that offer payday loans to make sure you find a competitive rate. You should be informed, in writing, about the amount of the fee before you sign for the loan.

Payback time

In most cases, your loan amount, plus fees, will be withdrawn from your checking account on your next payday. Payday loans are due anywhere from 4 - 18 days after you receive the cash. The specific requirements can vary, depending on your frequency of pay (whether you get paid weekly, bi-weekly or monthly). It is even possible to have up to 31 days to repay, though you will have to pay higher fees for such extensions. You also have the opportunity to repay your loan early with no penalty.

The dangers

Continuous use of payday loans can make your financial situation worse, not better. Though you might choose to use them on occasion, the fees can add up quickly. For example, it can cost $60 to borrow $200 for 15 days. It may be less expensive to talk with your creditors and explain the situation to them. Any late fees that they charge may be less costly than the amount you would spend for payday loans, especially if you end up paying extra fees for late repayment. Look at all of your options before you run to the nearest paycheck advance store for a quick solution. If you do decide to take out payday loans, only borrow as much as you can afford to pay back and still have enough money to make it to the next payday.