Cash pay day loans come in very handy when you are in a financial dump having exhausted your paycheck and not having any savings in your bank. If you have to meet some medical emergency of your family or if you must pay some outstanding bills immediately, you will have to look for financial help and at such a stage, cash pay day loans can prove to be a quick alternative for instant money. You will be able to meet your financial emergency and pay back the loan when you get your next paycheck.
How Do Pay Day Loans Work?
Cash pay day loans are short-term loans designed to help you go through your difficult period in between your paydays. The normal duration of the payday loan is usually a couple of weeks until you get your next paycheck. The amount of the cash advance is usually very small but it depends upon your monthly income and some other factors. Usually a first time borrower would be offered $500 but this amount can also go up to $1000 or $1500 depending upon various factors.
You are expected to repay the cash pay day loans along with the interest and finance charges of the lender on your next payday. If due to circumstances beyond your control you are unable to do so, you can ask the lender for a rollover of the loan and pay it back on your next payday. However, this will prove to be a very expensive proposition as the lender will impose high finance charges in addition to the already high interest rate that they are charging. It is therefore, in your interest to borrow only that much amount that you can conveniently return on the scheduled date.
Application Process and Time Involved
If you are applying online, you just have to fill up a simple application form and provide details regarding your employment and checking bank account. Some lenders might ask you to fax documentary evidence of the loan whereas others do not need it. The time required for approving cash pay day loans is a matter of minutes or at most an hour and the money will be deposited in your checking account on the next working day.
Searching for Reputable Lenders
Payday loan industry is one of the fastest growing businesses in the US as well as some other countries such as UK, Australia, and Canada. This leads to an acceleration of payday lenders who can be found in the Internet, newspaper, television, or radio. Even though it is relatively easy to choose a lender you should spend fair bit of time to research and compare several companies in order to get cheap interest rate, fast approval process, and easy repayment.
