Have you been considering a payday loan but are concerned about the cost of interest? Payday loans have received some very unpopular press in the past, but many things have changed with this type of loan. The biggest change is the interest rates that are charged on the loan. When the payday loan first originated, there were some greedy lenders who preyed upon those who were in need and charged exorbitant amounts of interest to borrow a very small amount of money. Lenders who service payday loans now offer much friendlier terms than those in the past, which makes borrowing money with this type of loan much more popular among borrowers.
No Credit Check Loan
While the interest rate that you will pay to borrow money when taking out a payday loan will be more than you would pay if you were approved for a traditional loan, it is not usually higher than ten percent - although that figure can vary from lender to lender and may be based partially on the amount that you borrow. And because this type of loan does not require a credit check, nearly everyone who applies for a payday loan is approved. Because of the added risk that the lender takes out when granting credit to you regardless of your payment history, you can expect to pay a tad more interest than a traditional borrower with good credit who is not seen as a credit risk to the lender.
Either way, paying a slightly higher interest charge or extra fees can certainly be worth it in a pinch - especially if you need money immediately for car repairs, doctor bills, groceries, gas to get back and forth to your place of employment, or other needs that spring up at the most inopportune times. Even those borrowers who have filed bankruptcy, have went through foreclosure, or have had judgments placed against them can borrow money through a payday loan. Unlike stuffy bankers who do not mind to turn you down, no matter what the need, a payday loan is a great way to borrow short term amounts of money.
Avoid Bounced Checks
Many borrowers who do not have the ability to borrow money find that the payday loan is an excellent alternative to bouncing a check in order to survive in an emergency situation. When faced with the option of writing a cold check for a car repair bill and losing their job, there are lots of people who choose to go ahead and write a check with insufficient funds to cover the amount. This is not only illegal, but can cost the borrower hundreds of dollars in bounced check and bank fees. Fortunately, getting through a crisis is easier when the borrower has access to a payday loan that can be written for as much as $1,500 and deposited into their account on the same day.
How To Apply
To apply for a payday loan, simply visit the website of the lender and fill out an electronic application. Any documents that the lender needs you to produce, such as pay stubs or identification cards, can be sent as an attachment to an email. Many lenders offer immediate approval and can send your money on its way in a matter of hours.
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