If you have
ever been short on cash, an easy payday loan may have crossed your mind. An
easy payday loan, also known as a cash advance loan, is a small loan usually in
the range of $100 to $1,000. These loans are short term and usually must be
paid back on your next payday.
There is no
credit check to qualify for an easy payday loan allowing anyone to qualify. The
requirements are usually just a checking account and a steady job. To start the
loan process, one has to complete an application, show some identification, and
then write out a check to the payday loan company for the amount of the loan
plus the fee. The loan is granted in a few minutes to a few hours. The company
will hold the check until your next payday. The payment is made in cash in the
office on the due date. The check is then given back to the customer.
A traditional
loan requires a credit check and sometimes verification of assets. The approval
process can take days or longer. The interest rate is much lower and the
repayment period is for a longer period. The drawback to these types of loans
is that many people who need a loan will not qualify, which is where the easy
payday loan comes into play. With so few qualification requirements, those who
need money quickly can count on a quick approval with a cash advance loan.
A negative
aspect of an easy payday loan is that the loan must be repaid on your next
payday. Someone who is already strapped for cash may have a hard time coming up
with the loan amount plus the loan fee. Payday companies have a solution for
this. There is a waiting period of 1 day and then the customer can take out
another loan in the same amount or higher depending on the amount of his
paycheck.
This sounds
great and it can help if the money is needed, but the cycle is very hard to put
an end to. Customers who get stuck in this rut constantly have a loan out and
are paying a loan fee every pay period.
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