Friday, June 12, 2009

How Payday Loans Work

Payday loans are short terms loan to get some fast cash when you really in need. Well, before you go ahead you should understand costs and risks with Payday loans.

Payday loans are known with different name. Some call it a check advance loan and some call it cash advance loans. Many call it a post-dated check loan and another name is a deferred-deposit check loan. The Federal Trade Commission has given another name and that is "costly cash". It's doesn't matter what you call it. It's the same thing: a short term loan with high interest.

Payday Loan Terms

Payday loan amount range from $100- $1000 and average loan term is two weeks. It cost around 400% annual interest (APR) or may be more that. The finance charge to borrow $100 ranges from $15 - $30.

Qualifying for Payday Loan

To get a Payday loan all your require is a active bank account with good standing, steady income source and identification. Payday loan lenders generally don't check your credit report.

1 comment:

MoneyFunk said...

And they are really evil, too! They shouldn't even legally be made available. If you notice, most payday loan places are in the more real non-affluent areas. Where they know people will get swooped in and owe there life to them. It's a terrible cycle to get into.