The term payday loan is used to describe a small, short-term unsecured loan that is used to cover a persons finances until his or her next paycheck. Most borrower's are approved as long as a more recent pay stub is provided to prove a steady source of income. In some cases a loan can be obtained even without a steady income depending on the lender.
Most payday loans are designed to provide loans for people who cannot get a loan from a traditional financial institution. The difference between the two loans are the interest rates, a cash advance loan has a higher interest rate but a higher approval rating. Payday loans are also called cash advance loans, fax less loans or bad credit loans. Payday loans are provided by payday lending stores or available through an online lender. The online lender requires a social security number, proof of employment, email and a checking account in order to deposit the loan. The loans are usually in small amounts typically from $100 to $1500 on approval, the interest rates and payment options vary from lender to lender. Once approved a check is issued or the money is deposited into the borrower's account with in 24 hours or in some cased up to an hour. The money can be used for what ever reason the borrower decides as long as the full amount is paid according to the agreement made during the loan process.
Overall a payday loan is a fast and convenient method of obtaining a personal loan without all the red tape associated with financing through a bank. Its is an almost guaranteed loan with a very high approval percentage for people who are stuck in a financial dilemma but don't have the time or means of waiting. One has to remember that a payday loan is a means to an end but not the solution, continued borrowing or mismanagement of funds could lead to a high level of debt. Cash advance loans should not be abused and only used during financial emergencies when all other means of borrowing are not available. Its always a good idea to shop around and research every possible option before making a commitment to one financial institution, family, friends, credit cards, line of credit etc.
Article Source: http://EzineArticles.com/?expert=Daisy_Coraci
Most payday loans are designed to provide loans for people who cannot get a loan from a traditional financial institution. The difference between the two loans are the interest rates, a cash advance loan has a higher interest rate but a higher approval rating. Payday loans are also called cash advance loans, fax less loans or bad credit loans. Payday loans are provided by payday lending stores or available through an online lender. The online lender requires a social security number, proof of employment, email and a checking account in order to deposit the loan. The loans are usually in small amounts typically from $100 to $1500 on approval, the interest rates and payment options vary from lender to lender. Once approved a check is issued or the money is deposited into the borrower's account with in 24 hours or in some cased up to an hour. The money can be used for what ever reason the borrower decides as long as the full amount is paid according to the agreement made during the loan process.
Overall a payday loan is a fast and convenient method of obtaining a personal loan without all the red tape associated with financing through a bank. Its is an almost guaranteed loan with a very high approval percentage for people who are stuck in a financial dilemma but don't have the time or means of waiting. One has to remember that a payday loan is a means to an end but not the solution, continued borrowing or mismanagement of funds could lead to a high level of debt. Cash advance loans should not be abused and only used during financial emergencies when all other means of borrowing are not available. Its always a good idea to shop around and research every possible option before making a commitment to one financial institution, family, friends, credit cards, line of credit etc.
Article Source: http://EzineArticles.com/?expert=Daisy_Coraci
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