What Is A Payday Loan?
A payday loan is a type of loan where money is advanced to a person. The loaner often receives the money in the form of cash and agrees to pay off the loan usually on their next payday. Most payday loans are small in number, often ranging from a few hundred dollars to a few thousand at most.
Payday loans are considered to be an unsecured form of loan. The loaner must usually write a check for the amount to be repaid, plus fees and interest charges. Due to the fact that payday loans are unsecured they typically have very high interest rates. They also go by the name of a payroll loan, a payday advance and a salary loan.
Payday loans are much more common in the developing world than in developed countries such as the United States. This partly has to do with a lack of a banking system and a poor access to credit in these nations.
Why Get One?
This is a good question. Why get a payday loan, if the interest rates are very high and there are charges for getting the money into your account? The answer to do this is often payday loans are the last resort for many people. They have often exhausted their options and payday loans are their last resort. They may have poor credit or banks may reject their applications. Payday loans on the other hand are more likely to loan to those with no or poor credit but on the downside they charge high rates and fees. They also only lend small amounts.
Examples Of Payday Lenders
There are many payday lenders now. You will find numerous companies on the web. Examples of payday lenders include MyPaydayLoan, Cashnet USA, One Click Loan and 1 Hour Loan USA. Many of these companies have online applications that can be filled in as little as a couple of minutes before approval. If you want to know more click on payday loans direct lenders.