Almost every salary dependent person faces monetary shortage just when the month has gone by a bit. Payday loans are considered as reliable source of instant borrowings especially for meeting urgency. One attractive feature of payday loans is that these are instantly approved and so the loan amount is electronically transferred in the borrower's bank account within 24 hours of applying for it.
Payday loans are unsecured loans requiring no security from the borrowers. Lenders however may take from the borrower a post dated cheque of the loaned amount and fee on it. Payday loans are approved for two weeks only. Payday loans can be returned at the time the borrower gets next paycheqe. However the borrower has the option of extending the loan repaying period for some more weeks, in which case lender will charge enhanced fee. You can avail â‚?100 to â‚?1500 under payday loans. The only disadvantage of payday loans is that lenders tend to charge very high fee. So you should opt for payday loans only to meet some emergency.
The only basis of lenders approving payday loans is that you are getting a fixed monthly salary for some months. That is why lenders approve payday loans without any credit checks. This obviously means that borrowers having past credit problems are also approved payday loans without any delay.
For combating high fee of the lenders on payday loans, ensure comparing different lenders. Competition in the loan market has forced lenders to cut fee and so there is now vast difference of fee between two lenders as per your personal circumstances.
Before applying for payday loans ensure that you have a checking account in a bank. Also note that payday loans are not provided to borrowers of less than 18 years of age. Make sure to pay off payday loan in time to escape penalties and high fee of the lender.
