Payday loans are becoming more popular, but what exactly are they? A payday loan refers to a short-term loan that can cover any immediate financial needs you have until you receive your next paycheck.
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Payday Loans
These loans provide you with quick cash that can help you cover any unexpected expenses you may have until you receive your next paycheck. These loans are easy to qualify for and usually only take a few minutes to apply for.
How to Apply
Payday loans online require a simple application process. All you typically have to do is complete an online application, choose your repayment terms, and await your approval. If you are approved you will need to sign your credit agreement and you can then expect to receive your money within the next few minutes.
How Much Can I Borrow?
On average, a payday loan can range from $50-$1000 depending on the state you reside in. Each state is different as some have a maximum loan amount you can receive and some do not have a cap at all.
What are the Costs?
Again, depending on the location you reside in the cost of receiving a payday loan varies. However, you can typically expect to be charged a fee from $10 to $30 to every $100 borrowed. As with any loan, you will also have an APR associated with your loan. Due to the quick availability of this loan, APRs on a payday loan can typically be seen at 400% or higher.
How Do I Repay my Loan?
After receiving your loan, you should expect to repay the loan with one payment by the time your next paycheck arrives. Each loan varies on their repayment terms which is why it is critical for you to understand what your specific due date is listed on your agreement. You may also have a few options as to how you can repay your loan. Many vendors accept a check, online payment, a direct debit from your bank account, or another form of credit.
What if I Can’t Pay Off my Loan?
If you run into the misfortune of not being able to pay off your loan immediately, you may have the option to receive a rollover loan. This loan is the remaining balance of your previous payday with a due date in the future. But be aware, you may rack up big fees opting for this type of loan.
As payday loans are getting more popular, it’s important to know about them. This blog just delivers everything one must know about payday loans. I liked the question-answer format of the blog. It made the blog easier to understand. The procedure to apply, the amount one can borrow, costs, the procedure to repay the loan, etc. is just clearly explained in this blog. The blog also contains information about what happens if you can’t pay off your loan.