You used to be able to go to your local bank to ask for a small, short term loan when you had sudden, unexpected expenses, like needing new tires on the car or covering unanticipated medical bills. But today people use credit cards to act as short term loans, which means few banks will offer this kind of financial assistance. Even if you need cash, you can use your credit card in an emergency to receive a cash advance.
For people who either do not want to use their credit cards, are in credit card debt, or simply do not have credit cards, one of the only options left are Payday Loans.
What is a payday loan?
A payday loan is a short term loan between the day you need the cash and your next payday. These loans are intended for people who need to borrow money for a short period of time. They should only be used for unexpected expenses or temporary income reductions.
Payday loans are usually for amounts under $1500. If you need to borrow more than $1500, you should look into other kinds of financial assistance (like personal loans).
Payday loans are meant to provide short-term credit, but are not intended for frequent use. However, this doesn't mean a payday loan lender will turn you away if you choose to use these services often.
How do you qualify for a payday loan?
Each payday loan agency varies in the requirements from borrowers, but the most common qualifications include:
Proof of steady income
Proof of an open bank account
Proof of identity
Proof of residency
Credit history is rarely a factor when it comes to being approved for a payday loan, which is one of the reasons why it is so appealing to many people in need of an advance.
How do you repay a payday loan?
Most lenders require you to write a post-dated check when you make the loan. The check will not be posted to your bank account until the date on the check. You can also make cash payments on the loan before it comes due. Some lenders will set up automatic payments, allowing them to debit the amount out of your bank account.
What is the interest rate?
Interest rates are usually pretty high, but they vary depending on where you live. Some states have passed bills that put a cap on how high payday lenders can make their interest rates.
While a high interest rate isn’t a huge problem if you pay the loan back right away, it can really cost you a lot of money if you need to extend the amount of time to repay the loan.
How does a payday loan work?
Once you are approved for a payday loan, you write a check for the amount you need, plus the fee for the loan. The loan agency either gives you cash for the amount you borrow or deposits the amount into your bank account.
Here is an example of how a payday loan works:
You need to borrow $150 for two weeks, until your next paycheck, so you decide to get a payday loan. You can either go to a payday loan agency or fill out an online payday loan application. Once you qualify for the loan, you will promise to pay the agency $175 (the $150 that you need to borrow, plus a $25 fee to borrow the money). This promise is made either by you writing a personal check for the amount or by providing the lender with your bank account information to set up an automatic payment.
When your next payday comes, you have a couple repayment options:
The lender deposits your check, and the money comes out of your bank account.
You pay the lender back in cash, and they return the uncashed check to you.
You extend the loan, and the lender charges you another financing fee.
You agree to electronic payments, and the lender automatically debits the money out of your bank account.
Where do you get a payday loan?
There are many physical payday loan locations you can visit to fill out the paperwork. Most of these places advertise their services as “cash advances.” There are also many payday lenders available online, so you can easily find a list of them when you do an internet search for payday loans.
Hoe To Refinance Car Loan
Planning to refinance your car loan? Your monthly car loan installments are exceeding your budget? Are you unable to meet the repayment on time? To all your questions there is an answer, the appropriate solution is to refinance car loan .
Refinance car loan is a method in which by taking a new loan you pay off the existing one. This way you can waive off a high interest debt easily and get a lower rate loan for yourself so that it becomes feasible for you to pay off. This is a secured loan by nature as for this your vehicle acts as the collateral against the loan amount.
Reduction in rates of interest is an important reason to refinance car loan. A fair credit report may also allow you to get benefit from refinancing the car loan. You can lower the installment amount by extending the term of repayment which allows easy repayment. But remember a longer repayment term means paying extra in terms of interest. You can even reduce your loan term depending on your preference.
Most importantly the car you are planning to refinance must not be older than 5 years and the value of car should be higher than the amount owned. If you successfully meet the above conditions then you can easily refinance car loan. If your loan value exceeds the car value then try to reduce the amount owned on car then go for refinancing.
Remember to refinance your loan through a new lender. So, do a thorough market research to find a great deal for yourself that fetches you a lower rate deal. You must include all information about your vehicle and mention the loan amount in your application.
Refinancing car loan is not a tough thing to do. All you have to do is research well in advance. The online application is the best and most feasible way to apply for this type of loan. You can even search around well to find a good deal for yourself. There are many lenders available online and by a thorough research you can fetch a lower rate deal .
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