Quick Payday Loans
Payday loans are short term, short money loans that can be obtained to cover an unexpected expense before the next paycheck rolls in. Quick payday loans are available from a variety of payday loan companies, both on the Internet and location in store front locations.
Quick payday loans can be obtained in a matter of a few hours. Customers who have a proven track record of timely loan payback can sometimes be approved for quick payday loans instantly and have the funds electronically transferred to their bank account in a matter of minutes. That is quicker than quick.
Lenders who offer quick payday loans will always advertise their best features and leave some important information unnoted in plain sight. It is essential those seeking quick payday loans understand the policies of the lender before signing on the dotted line and accepting quick payday loans. Since the word “quick” is a relative term, the lender and the customer may each have a different meaning of the term “quick payday loans.”
The lender usually has a qualifier in place when referring to quick payday loans. A qualifier is something that has to take place before the actual promised element will kick in. For instance, quick payday loans sometimes means the approval process will be quick if the applicant is a repeat customer in good standing.
No matter how long it takes for quick payday loans to be approved, it is usually quicker than approval for a bank or credit union loan. Quick payday loans are geared toward those who have credit issues and would not necessarily be approved for a bank or credit union loan, as lenders very rarely perform a credit check when reviewing and approving quick payday loans.
Quick payday loans have high-finance charges attached to them, usually 15 to 35%, and a payback time frame of 7 to 31 days. Payday loans are so named as they are paid back the next time the borrower gets their next employment paycheck. Even with a high-finance charge, quick payday loans are sometimes the only option a borrower has to get financial relief when facing a mini cash flow crisis. If the loans are used responsibly, quick payday loans will be paid back on time without causing the borrower any further monetary hardship.
Quick payday loans are regulated in some states and banned in others. The states that regulate such loans usually regulate the maximum finance charge, the maximum amount the loan can be and the maximum number of times the loan can be extended. The regulations were put in place for better consumer protection. Unregulated, the lenders can charge whatever they want in interest rates and some were charging upwards of 50%. The payday loans were fast becoming more of a problem than help and borrowers were falling into the black hole of high-interest finance and no way to get out. Before a borrower takes out quick payday loans, estimate the loan necessary and just apply for what is needed.