These days, many people are searching for credit. Recent advancements in lending have brought us payday and alternative installment loans.
Most people aren't either aware of the term, PayDay loans. Pay Day Loans, or cash advances, are simply money loaned to you for a short term, usually 1-2 weeks. Unlike traditional loans through your local lending institution (bank or credit union), PayDay loans often are available without credit checks. You also don't need to secure your loan, (with something of value such as a car, house, bank account, etc).
Payday loans provide quick cash, usually next day via electronic deposit to your checking or savings account. Rates vary by lender and by state. We suggest you shop them out using a site such as the one at the end of this article. Pay Lenders Bad Credit Blog finds popular lenders who specialize in short term and installment loans to those with not-so-perfect credit.
Loans from a payday lender, can vary. Usually a first-time loan ranges from $100-$500. Subsequent loans, after you've paid off your first loan, can range from $500-$1500.
Most payday cash advances charge between $20 and $30 for each $100 you borrow. This means that a $300 loan repayment may be between $360 and $390. If your credit isn't what it used to be, you may want to consider a short term loan rather than going around to all of your local lenders in your area.
One thing to consider about getting a denial of credit from a bank, credit union, or other traditional lender; each time you fill out an application for credit and the lender pulls your credit report, if you get denied for credit or loan, it could negatively affect your credit score even more than it already is. This is because the credit agencies such as Trans Union, Equifax, and Experian look at the applicant as fishing for credit. This doesn't sit well with the credit agencies so they most likely will knock your score down a few pegs, just for applying for a loan which you get denied for.
However, many short-term loan companies, payday loans, cash advance companies, do not pull a credit report. You establish credit with them usually with a $100 to $500 loan at first. Subsequent loans are generally higher if you've paid your loan off in full and on-time.
Let's say you get a loan today from a payday lender for $500, and you pay it off before or on the due date. The next loan ceiling may be up to $1,000 you can borrow the next time you need cash fast. This can be very helpful to have on your side as buying power, or bill-paying leverage.
Whether you're taking a much-needed vacation, doing home or car repairs, lost wages, or medical expenses, you may want to look into some quick relief a'la Payday Loan.
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