Today we live in such a world where every single person has one or even more loans. Thus, there are some who will have to pay it back over the next several years and there are some who will pay it back in a shorter time. However, we are all in some kind of debt to a bank and our loans are not small either. Nevertheless, there are also some other loan types that do not have such a long period for payback. Actually, these loans are payday loans and they are short term. In fact, they have certain advantages over the regular loans, but this will depend on the type of your situation and what exactly you are looking for.
So, as already said, payday loans are short-term loans. In fact, the period of payback can last as much as twelve weeks and this can be very convenient if you are in need of some small amount of cash and if you need it immediately. Thus, let us present some of the most important payday loan facts.
Of course, you first need to apply for a loan and when you have done this, what the company will rely on are your payroll records if you have any. Nevertheless, the laws that regulate payday loans tend to be quite different from one state to another, but there are always some limitations set in order to avoid usury. For example, in some states, a lender can charge only some amount of the annual percentage rate (APR) because these state limit it exactly in order to avoid usury. However, there are no such limitations in some other countries and also, many countries do not impose any restrictions for the lenders. Now, despite the fact that a payday loan payback period can last up to twelve weeks, you are, in fact, to pay back the whole sum that you have borrowed along with the fees on the day of your next pay.
When the amount of cash you can take out is considered, it usually ranges from a hundred dollars to a thousand dollars. The reason for such small amounts is that there is no collateral for his loan. Nevertheless, if you do need more one thousand, there are some lending companies that will grant an amount of up to a thousand and a half. However, this is offered only to the customers who have taken payday loans before and who were proven to be able to pay it all back.
In a nutshell, payday loans are the short-term loans and they can provide you with somewhat smaller cash amounts than a regular loan. Nevertheless, you find that the right solution for your situation is a payday loan, than you can apply very easily at some of the local companies and you will probably be able to withdraw the cash within the next twenty four hours and maybe even less. However, if your financial situation requires larger cash amounts, you will then have to look for a regular loan at a regular bank.