Payday and Cash Advance Loans

Get the facts on payday loans and cash advance loans

Average fees for a payday loan range between fifteen and thirty dollars for every one hundred dollars advanced. The annual percentage rate, (or APR), ranges between four hundred and one thousand APR. One should view the cost of getting the payday loan as a service charge. The loan is great for one in an emergency financial situation. If one is feeling like they have run out of options and are resulting to bouncing checks, pawning personal property, or borrowing money from friends and family, the better solution would be a payday advance loan. The loans are also great for avoiding late payment penalties and negative marks on credit ratings. If appropriately used, payday loans can provide helpful assistance to those with short term cash needs.

Payday advance companies market their product with sound bites, such as; fast, hassle free, and no credit check involved. Many times a customer will here what he or she wants. Usually what one may hear is “quick easy cash”, not “quick easy loan”. It has been found that even though emergency aid may be available, (such as short-term cash to families at zero cost); many people will first turn to a payday lender. People may prefer payday lenders over mainstream financial institutions for many different reasons. Where a financial institution may ask a lot of questions, a payday advance company will not. Financial institutions may also suggest that the customer take a budgeting class and conduct a full credit check.

Most payday loan companies are quick to “hand over” the loan, no suggestions or credit checks. Privacy is another factor in ones choice on choosing a financial institution or payday advance company. A payday loan transaction is more private than one at a credit union or bank. Ordering a loan at a computer has been noted to be simple, rather than sitting at a bank where a lender has access to the customer’s bank account through electronic debit. The main reasons for choosing a payday loan, seems to be that the loan offers customer convenience, speed, simplicity, and neighborhood friendliness.