Payday Loans Today
Payday loans have been around since the days of the small mom and pop stores. In the 1920’s and 1930’s owners of such stores would often loan working customers a few dollars until payday and perhaps charge them a penny or two on the dollar in interest, if they charged them interest at all..
Payday loans today have become a billion dollar business. Every year more and more people take advantage of such loans to help them through a mini cash flow crisis. It is important to remember payday loans today are short in duration and high in interest. Lenders provide payday loans today to cover an unexpected expense or even to just allow applicants to have cash in their pocket until their next payday.
Not everyone qualifies for a bank or credit union loan and payday loans today fill a need for those with no other option. Payday loans today are available to those who meet the age, employment and bank requirements. The applicant of payday loans today must be at least 18 years of age, have steady employment with a minimum monthly salary and an active bank account that is electronic transfer friendly.
The lender will verify the required application information the first time an applicant requests a payday loan. It is essential the applicant make sure the information is complete and accurate. If it is not, the application process and approval will be delayed and some lenders will reject the application if information is missing or inaccurate. Payday loans today are typically approved without the benefit of a credit check, making the approval rate about 99%.
Payday loans today can be used for any purpose, but they are intended to be used to cover an emergency that occurs between paychecks. The high finance charge that is applied to payday loans today make the loans expensive and the kind of loans that should be used sparingly. The loans cost the borrower anywhere from $15 to $35 for every hundred dollars borrowed. To borrow a hundred dollars or so makes the loan seem reasonable, but when the applicant crunches the number for a loan of hundreds of dollars, the payback amount gets very steep. The annual percentage rate for such loans often hit the triple digits, which draws the ire of payday loan critics.
Since payday loans today are available online, the application and approval process is easy and quick. The applicant does not have to leave the comfort of home to apply for a payday loan and receive the funds. Once the application is approved, the funds are transferred directly to the applicant’s bank account electronically, unless other arrangements are made when the application is submitted.
The payday loan is repaid the same way, an electronic transfer. The lender will make a onetime withdrawal, electronically, from the borrower’s bank account when the loan is due. If sufficient funds are no available, the lender will add penalties and fees to the cost of the loan, making the loan even more expensive.