Most Americans are solely dependent on their paychecks. In such a scenario, coping up with emergencies is tough. Payday loans are meant to offer relief in case you face shortage of funds before your next payday.
Payday loans are known with many different names such as salary loan, cash advance loan, paycheck advance loan, etc. You can get payday loan from many private lenders and banking and financial firms. You can get paycheck loan online as well.
How Payday Loan Helps You
Emergencies, big or small, may strike you unexpectedly in any day, and most of the time, dealing with them means spending a good deal of money. For example, your home system suddenly breaks down and needs repairing. Or, maybe you have just detected a critical failure in your car that needs urgent attention. You need some money to fix problems like these. Since you are dependent on your salary, you will need some extra cash, which a payday loan fulfills.
Payday Loan Online
No matter whether you need a payday loan online in Florida, New York, Phoenix, or whichever city or suburb you are at, you can simply visit the website of a lending agency and apply for the loan. However, to make sure that you are getting the best deal on your payday loan, you might want to know what other offers are available for you.
RateCheker.com helps you find the best deal on payday loans in your city. We provide you with a list of offers; you can compare the quotes given and select the lender whose offer suits you the best.
Representative APRs range from 260.71% to 1,825.00%
Implications of Late Payment
In the event that you cannot make your loan payment on time, you should contact your lender prior to your due date in order to discuss your options. Most lenders offer rollovers or extensions, but you should remember that there are additional fees associated with these in almost every case. You should review all of the information provided to you by your lender before you provide your signature on any loan agreement in order to protect yourself against surprise charges and additional fees.
Implications of Non-Payment
If your cash loan becomes delinquent and remains unpaid—typically 15 days beyond the original due date—there are several things that may occur. These include:
Financial Implications – The fees associated with short term loans of up to $500 can range from 12% to 40% on average, and this can climb even higher for loans of more than $500. These fees should be checked with your lender before you sign any loan agreement. There are additional fees for insufficient funds or returned checks, and this averages $20 per instance.
Collection Practices – When your debt remains unpaid, lenders have several options available to them to attempt to collect that debt. They may contact you via telephone, email and even text message to remind you that your loan is delinquent. However, these lenders must adhere to the Fair Debt Collection Practices Act.
Impact on Credit Score – If your payment is not made on time, your lender reserves the right to report this delinquency to any one of or all of the major consumer credit reporting bureaus. This can be devastating to your credit score and it will prevent you from being able to obtain short term loans in the future. Once the loan has been repaid in its entirety, the lender will report this and the delinquency will be cleared from your credit history.
Renewal Policy – Depending on the lender and the terms of your agreement, your loan may renew automatically. Should this occur, you will be responsible for paying the additional fees associated with this rollover, and the minimum renewal term is 15 days. Some other options that your lender may provide include the ability to repay your loan in full or make payments on the principle balance over an extended period of time.
Fees and APR Disclosure
The rates and fees associated with your loan, including the APR, must be disclosed to you in writing before any credit is extended to you according to federal laws. The APR—Annual Percentage Rate—associated with short term loans may range between 260.71% and 1825.00%. While this may seem extraordinarily high, the rate is highly competitive when it is compared to the charges associated with bounced checks or overdrawn bank accounts. Listed below is a comparison of these charges as applied to a two-week $100 short term cash loan.