Understanding Internet Payday Loans

by : Cavin Jacobs

At the outset, consumers certainly know that payday loans are usually easy to get approved for and are found just about anywhere. Even though a payday loan might be called by several terms, they are all the same as long as they mean a loan which is to be repaid on your next payday. Struck with the term 'loan', you may be under the assumption it is difficult to get a payday loan like any other loans which involves a complex and time consuming process. Surprisingly though, uncharacteristic to most receiving a payday advance is not that time consuming. Most customers shouldn't be surprised if you get a requested payday loan wire transferred to your checking account within an hour or two. However, some pay day loans might take up to one day to be approved. There are certain things that you might need to know about payday loans.

The basic requirement to obtain a payday advance is a minimum monthly earning of $800. This will qualify a customer for securing small payday advances. However, if you earn more then $1,400 each month, you are also eligible for obtaining bigger payday loan advances. In addition, it's best that you have worked with the same employer for at least six months or more. If you can qualify based on these simple requirements, then nothing else should prevent you from obtaining a payday advance.

There are no reasons for you to stress about whether your credit history is a hurdle in getting a loan until payday. Surprisingly, your credit is not used to qualify applicants. Payday advance companies will never evaluate your credit rating, nor will they request difficult documentation. Despite your credit standing, payday loans will usually provide you a quick cash solution within hours. Most lenders require the details of your checking account, so they can directly deposit your money. Generally, the lender will ask you to fax them a check for the requested loan amount and the interest. This check generally is post dated to the due date and given to the agent along with an agreement which enables them to draw the amount from your check or savings account on the due date.

Typically, payday advances do not sanction more than $1,500. Most companies limit your first payday loan to $500. After you constantly prove yourself, the loan ceiling will be raised over time. The loan repayment is typically as follows. On the due date, the payday lender will request the money due to them from your banker by depositing the post dated check given to them. Alternatively, you may also request to pay it in person and get your check back.

When compared with other loans, the interest rates of a payday loan are certainly higher ranging anywhere from 10% to 25% each payday advance, which is drastically higher than a traditional loan. However, due to fierce competition in the industry, these interest charges seem to come down these days. There are generally options to roll over the principal amount of your pay day loan to the coming month, by paying the current interest amount. However in these cases, a duplicate interest is charged. Therefore, unless there is a definite need, it is never advisable to use this option.