Same Day Loans for Bad Credit
Payday advance loans are small cash loans intended to fill a financial gap in the event an unexpected expense happens before the next pay day arrives. Payday advance loans are meant to fill a temporary need and are not intended to be a long term financial solution.
Payday advance loans are available from online and store front lending services and are usually not a bank or a credit union. Some states regulate the payday advance loans while some states do not allow such loans to be offered. If they are offered in the states that outlaw them, they are being done illegally and the chance of recourse is pretty much zero if you take out a loan and then have problems with the lender.
Payday advance loans are often utilized by those who have credit problems and would not qualify for a bank loan. Most advance payday loans are available without a credit check, cosigner or collateral. The loan amounts are available in any amount between $100 and $1,500. The application is simple and can be filled out in about 5 minutes. As long as the applicant meets the requirements of the lender, the applicant will be approved for a payday advance loan. The requirements vary depending on the lender but they include the applicant being over the age of 18 years old, having a regular income from a job or some other source and a bank account that accepts electronic transfers.
The drawback to payday advance loans is they can cause more problems than they will solve if not managed properly. The payback period is short, usually 7 t0 30 days and coincides with your employment pay day. The borrower should only apply for the amount of money necessary and not take out the entire loan amount, which is usually $1,500. Keep in mind the high finance charges that comes with the payday advance will add significantly to the cost of the loan. The finance charges are between $15 and $35 for every hundred dollars borrowed. If you take out a $200 loan, the payback is between $230 and $525. If you take out a loan for $1,500, the payback is between $1,725 and $2,025.
The interest on advance payday advance loans can be crippling if the loan cannot be paid back in a timely manner. Add in late fees and penalties and the loan that was meant to help can be nothing more than a hindrance. This is the concern states have with such loans as the high interest rates can be prohibitive, even though the loans are necessary for some people.
A condition of taking payday advance loans should be the applicant to seek the advice of a money management specialist to help understand good money management and living on a budget. The goal should be for the applicant to practice wise saving and spending, as well as making amends for earning more money if you want more money to spend. Money is like an elastic. If it is stretched too far, it will snap and the recoil will be painful.