Payday loans are loans for smaller sums of money. They are traditionally at much higher interest rates than other typical kinds of loans. These loans must be paid when the borrower receives their next paycheck.
These kinds of loans may seem predatory because of their interest rate, but they can actually be good ways of getting cash fast. They can be used to pay bills or cover emergency expenses. Most people can qualify for payday loans.
You can learn how to request online loans with Turbo Payday. There are many companies that offer payday loans. You can even find some companies in your area to assist you. Every company is different in terms of the amount of money you can borrow and interest rates. Take some time to review the terms and conditions of such agreements carefully before selecting a company.
Here are five truths about getting a payday loan:
1. Most payday loans are $500 or less.
Payday loans usually average around $300 to $500. Some loans are capped at a $500 maximum. Just make sure to read your contract carefully for any late fees or additional interest that may be charged. In some cases, these costs can be double the value of the original loan or more, depending on when the loan is repaid.
2. The average payday loan is valid for two weeks.
Many payday loans have a two-week window in which the debt must be repaid. That’s what makes these kinds of loans convenient for people who need a small amount of cash quickly, to tide them over until their next paycheck. If more time is needed, these loans can be rolled over or renewed.
3. Interest rates can be high.
If you take out a payday loan, pay close attention to the annual percentage rate (APR) on the contract before you sign it. Some APRs can be over 300% or higher. One exception to this is on payday loans made to members of the military and their families. In these instances, the APR is capped at 36%.
4. The approval process is fast.
With most banks and lending companies, you can be approved for a payday loan in mere minutes. You have to be of legal age, provide proof of income and you usually have to have an active checking account and phone number before you can fill out an application. These companies usually do not check your credit, and you don’t need to have a credit score to apply for a payday loan.
5. You will not go to jail if you fail to repay a payday loan.
Payday loans, along with many other kinds of loans, are matters of civil law if they are sold to a debt collector. However, it may affect your credit score and lessen your chances of being approved for other kinds of loans in the future.
These are just a few facts about payday loans. These kinds of loans are available in over 30 states at over 20,000 locations nationwide. They are a popular way to get cash when you need it. Just make sure that you read the fine print, and pay back the loan as soon as possible to avoid any interest charges or late fees. Payday loans are a growing industry, and can be a good way to help people get back on their feet or cover costs when an emergency arises.