Payday Loans, Credit Cards or Bank Loans. the Facts!

By: Keith Driscoll

Payday loans are given in cash and secured by a borrower's post-dated check that includes the original loan principal and accrued interest up to the due date. Payday loans are short-terms loans that must not however be used repeatedly from payday to payday. Fees charged for payday loans are usually a percentage of the amount borrowed or so much for every $100 you borrow. Spending more than you earn is always a bad thing, and payday loans are a bad and expensive "solution" to money management problems.

Credit checks or bad credit have never been an issue with payday loans unlike several other loan types. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis). Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost.

Cash-strapped consumers can find themselves enmeshed in an endless cycle of repeated borrowing at extremely high costs. If you're familiar with cash advances, then you have an idea of what instant payday loans are. However, whenever you go for any type of payday cash loan, you should do a thorough market research so that you never repent on the deal you get.

If you are planning to opt for online Payday or Cash Advance loans, you can search for the best online money lending sites online and within a few minutes of applying, your loan will be permitted. There are a few online finance sites which do not even perform a credit check on you before accepting your loan request for a limited sum of money. If someone really needs the money urgently, there is no other option for him/ her but to loan the cash at a higher interest rate.

Lenders do not conduct a full credit check or ask questions to determine if a borrower can afford to repay the loan. After several renewals, some lenders require borrowers to reduce the loan principal with each renewal. Some lenders require applicants to agree to keep their bank accounts open until loans are repaid.

Military personnel and recent immigrants also commonly use payday loans. There seems to be an advertisement for military payday loans on every street corner near most bases, not to mention on all kinds of financial websites. The reason is, these payday loans are incredibly profitable for the lenders and they love to profit from military families. In the case of military payday loans, the borrowers are hard working military members who put their lives on the line to protect the nation.

Whether you need it to cover an unexpected bill, an emergency repair, a sudden family expense, or any other urgent financial need, payday loans are great and easy ways to get cash fast when you need it the most. Many times payday loans are available to those who have trouble getting a bank loan or a credit card cash advance due to bad credit or other reasons. However, Payday loans are perhaps the easiest to get.

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