Information on Payday Loans
For the most part, people who have not ever had a need for a payday loan do not know much about them. They do not know what the benefits are or how they can really help people. For those who have never needed a payday loan here is some information that you should know.
Many people consider payday loans safer than getting a traditional loan from the bank. Payday loans have safeguards that most bank loans do not have. With a payday loan they are usually regulated and therefore can only lend out so much at one time. With a payday loan if you cannot make your payment when you get paid you have the option of rolling over your loan for a fee.
A bank will give you all the money you ask for once you are approved. With a bank loan, you miss one payment; you are in a world of financial trouble. There will be late fees, added interest, and so on.
Payday lenders typically only lend you as much money as they know you can realistically pay back. This prevents you from borrowing too much and getting over your head. It protects you from getting into a bunch of financial trouble.
A bank will lend you money and set up payments, and often they do not care if you are really able to pay back all that money. If you do not then they will take your car back or reposes your home. Then they can turn around and sell it and make more money.
Payday lenders do not check your credit report. If you have had trouble in the past and need help now they will help you. The requirements that you have to meet are easy. You must be eighteen years old, have a job, a checking account, and be a United States citizen. The fees for a payday loan are the same for everyone no matter what; it is always a certain amount per another certain amount, such as a fee of fifteen dollars for every one hundred borrowed.
A bank loan has may more restrictions. You have much more paper work that you will need to fill out as well. If you try to get a loan at a credit union you better be a member or you will have no chance to get that loan. Banks and credit unions will check your credit score and if it is not great and they are still willing to give you a loan, you will have rather high interest rates.
If you have never had the need for a payday loan before, you need to become informed about them even if you have no need at the present time for one. There are many benefits to payday loans and Americans all across the country are getting the help they need thanks to a payday lender whether it is in a storefront location or online. You may not have a need for one now but it is a good idea to understand them in the event you need one in the future.