Pay day loans have recently gone under an
increased scrutiny from almost all levels government who claim they are
charging to high of an interest rate on the short term loan. Some
states have passed legislation which capped the interest rate payday
lenders are allowed to charge. This new legislation has shut down many
retail stores throughout the effected states but has also created an
emerging and very competitive online payday lending market. As new
lenders consistently move online for issuing pay day loans the online
lenders are lowering their interest rates to stay competitive. This has
ultimately resulted in a better deal for the consumer and a recent
study has found that online pay day loans consistently offer consumers
a better rate than the retail outlets.
Now let’s compare taking
out a short term loan through a payday lender as opposed to getting a
credit card cash advance. Let’s start off with the credit card cash
advance. These short term loans usually carry an interest rate of about
29% on average and are typically paid back with the minimum payment
throughout the course of a year by the majority of consumers. What the
credit card company doesn’t tell you is that the cash advance is put at
the bottom of your repayment cycle and therefore all the items on the
credit card before the cash advance must be paid off first. Meanwhile
your credit card company is charging you a high interest rate every
month which can add up very quickly.
If you really want a short
term loan that can be paid back and done with then you might want to
consider pay day loans. A typical finance charge for this short term
loan is $15 for every $100 that you borrow. Bad credit is usually not
an obstacle is getting a payday loan. The most important thing that
lenders look at is whether or not you have a job or a steady source of
income. Having a job is really the ticket to getting the loan. The
lender will use your next pay check as a security for repayment and if
you cannot repay the loan on your next payday most lenders will give
you an extension until your next payday.
Pay day loans are
typically issued anywhere from $100 – $1,500 and can be deposited
directly into your checking/savings account usually within 24 hours of
filling out an application. For consumers who need to get cash quick
then a pay day loan is by far the most convenient method is doing so.
would strongly recommend that you search for a loan online as that’s
where you will most often find the best deal. There are a few good
websites out there where you can fill out one application and receive
multiple quotes from various lenders. These multiple lender websites
will make the lenders compete for your loan and therefore you are
guaranteed to receive a true market rate.
For a payday cash advance loan lender that has consistently provided competitive rates check out this link:
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