Is A Pay Day Loan The Right Choice For You?

by | Dec 21, 2015 | Finance & Money

There are many Americans that struggle through from one paycheck to the next. Unfortunately there are many people that cannot build up their “nest egg” and in the event they are faced with a problem that demands instant cash they will often turn to a pay day loan to tide them over. Although the majority of pay day loans are granted to individual consumers, even the small businessman who is waiting for a customer to make payment can find himself in a similar cash-flow situation.

A pay day loan is an infusion of short-term cash. When you find that you are faced with an emergency and you don’t have cash available an advance of $100 up to $1000 will usually get you over the hump. These loans are meant to be repaid when you are next paid; the term of the loan is usually 14 days or less. Lenders who offer a pay day loan to either consumers or small business people do not require collateral and credit checks are rarely made.

With the advent of the internet, applying for a pay day loan is now quite simple; the application can be completed from anywhere there is internet access. This new technology eliminates the need of having to visit a shop; all which is required is a little basic information about yourself; your personal details, where you work and the details of your checking account. There is no need for the applicant to be concerned about his or her credit score as pay day lenders don not run a credit check before they approve the loan. What you do need is a checking account where the proceeds from the loan can be deposited. You will be asked to provide access to the account so the lender can reclaim the loan amount on the agreed upon day.

This is pretty straight forward and works well for those that can repay the loan in full on the day. There are circumstances that make it impossible to do this, it is important that before you accept the loan offer that you know what will happen if you cannot pay the loan in full on the agreed day.

Each state has specific rules that apply to the pay day loan industry, state regulations set the maximum amount that can be borrowed as well as the interest rate. Although this industry is always under some type of scrutiny it must be said that there are many honest lenders that are there to help people in their time of financial need.

When you find yourself in a situation where you need money that you don’t have you can turn to a company that will provide a short term pay day loan. For help in arranging the loan you are invited to visit the web site of Short Term Loans.

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