You have to know exactly what payday loans main features are if you want to be able to analyze an offer and to compare loan offers from more than one lender.
Payday loans are a financial product that is increasingly booming and with greater magnitude in online. The main reason is that you can get the money within 24 hours and are available for a lot more people than those “bank worthy”. Although not all quick or urgent loans are payday loans, most of these offers are in fact made by payday loans direct lenders.
There are many way to tackle this topic, but the bottom line is this: payday loans main features are very very different considering the point of view side. The lenders have one opinion. The borrowers have a completely different opinion. The people with bad credit scores might have their own opinion. The authorities have another one. I can go on like this forever, but you’ve got the point, right?
One way too look at the payday loans main features is to categorize them by maximum amount that can be granted:
- minicredits. The payday loans direct lenders are offering usually amounts between $50-800. The loans are granted instantly, immediately;
- online fast loans. You can borrow an amount of up to $10,000, but with considerably more restrictive conditions than for minicredits. With this option you get the cash within 24 to 48 hours. In some cases it could take three days.
The 3 payday loans main features
The loans are granted for small sums
Since the money are borrowed against the next paycheck, the amount cannot exceed the amount of that paycheck. In fact, the amount rarely can exceed 30-35% of your next paycheck.
The amount must be paid back the next payday
There is no minimum or maximum period of time for such loans, just what it takes until your next paycheck, but of course, no more than 30 days.
You must issue in advance a check to the lender for the balance
The lender may charge on the due date. Normally the money are drawn by direct debit from your bank account in the day your paycheck is due. But if your paycheck is not in that bank account when is expected, the check will be used by the lender.
The cost of the loan can range from $10 to $30 for every $100 borrowed. The laws are different among the states of USA. Other factors can influence how much you can borrow and the fees they charge.
At present there is a great variety of direct lenders who are dedicated to provide loans online. You can get $50 to $800 and up to $10,000. The requirements are flexible and uncomplicated.
In the event that you do not expect payroll, there are also lots of direct lenders specialized in payday loans and microcredits available online for applicants without payroll.
So the thing is that you can go on with the costs of online fast loans, e.g. mini-credit, and pay the amounts mentioned at the beginning. That is $50 to $800 and $10,000 respectively.
That way they facilitate the process and you will be able to make an informed decision.
A payday loan is a financial instrument that gives consumers a small amount of dollars at medium or high interest rate, through a short-term loan. Usually, the borrower gives the lender a post-dated personal check for the amount paid plus the interest in exchange for the fast cash loan. The lender cashes the check on the agreed date which is usually the next payday of the borrower.
What catches the attention of the people is that the process is completely private so no one has to find out that you asked for loans are a way to get money expeditiously and almost instantly to meet urgent needs that arise as no traditional lender will lend money.