How Payday Loans Can Bail You Out of Unexpected Cash Emergencies
April 8, 2009 by Benedict Hunter
Filed under Credit Card
When you least expect it, an emergency will arise, the kind that can be solved by quick cash availability. But if you’re like most people, you’re probably just living from one payday to the next, with little or no money left in the bank.
When do you need a payday loan?
You just brought in your car for a quick oil change and your mechanic spills the bad news. He said your brakes are almost gone and needs to be replaced immediately. $250 will cover the repair but you don’t have that kind of cash available, and your next paycheck is still more than a week away. You don’t want to borrow from your friends who you still owe money from.
You don’t want to waste your time with big loan companies because all you need is a small loan for a brief period. They’d lock you in to a $2,500 minimum loan inside a one year minimum payback period. You would fail the credit check anyway and all your credit cards have been maxed out.
You can also forget about your bank where you have a checking account. With a poor credit history, it’s not happening. And you’d get funny looks from the bank staff for trying to borrow such a small amount of money.
Just then, you recall a banner ad you saw online a week ago. It mentioned something like “Guaranteed approval. Bad credit? Not a problem. Zero credit check. Cash in a flash.” Payday loans! You can pay them back in payday period or two. The interest charges may be discouragingly high but if it will get you out of a tight financial fix right now without the annoying credit checks, then it’s all worth it.
How can you get a payday loan?
With your computer, you may apply online for a payday loan, also known as cash advance, from the comfort of your home. Since you’ve been steadily employed for more than three months, then you’ll just have to show them your proof of employment.
You’ve got a checking account that’s current and valid, and you have no record of bounced checks, which is good. And you have no previous history of online payday loans. Having checked your qualification, you can fill out the online loan application and wait an hour or two for your loan’s approval. The company will electronically deposit your money right into your checking account and you can have your brakes fixed on the very same day.
What are the interest rates?
Payday loan interest rates can vary from $15 to a maximum of $30, depending on the lending laws governing your state. Should you extend the loan up to your next paycheck, then you’ll pay twice the fee but buying your peace of mind is better than living with anxiety without your car.
If you know some people who have conducted business with a lending company, ask them to give you some details. Study a lot of online information and choose the right lender that can provide you the best payday loan options. With patience and due diligence, you will find a trustworthy lender that can get you quick cash that you can use during unexpected financial situations.
Max Wood (1)
Thanks for sharing this post on your blog. I really like your website design and your twitter page. Short term loans can be very helpful but they do have to be used properly and it’s a good idea to pay them back on time. When these loans are used in the right way they are very useful, but once a person gets behind, it’s much harder to get caught. The best thing to do is make sure to read everything before signing, know what you are getting into, and to make a plan to pay all payments on time