Payday Loans: What You Need to Know

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Many people confuse payday loans with any other short-term cash loan. Other people think borrowing money from their credit card company is a better idea than going through the hassle of getting oneself a loan for some extra money at the end of a month. However, what many people do not understand or know is that there are problems with credit card draws that often don’t meet the eye. You cannot draw as much money as you are promised, there are charges at every front and sometimes, when you cannot pay back your loaned money, the interest amounts alone can get exorbitant. A much cheaper and safer way is to just go for an easy payday loan. Here are a few things you need to know about them.

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Difference from other loan types

A payday loan is simply aimed at making your life easier by letting you have a few extra dollars at the end of the month to sustain your lifestyle. This is mainly a great benefit for college or graduate students, newly joined workers and other similar persons who do not yet earn enough to make a saving. These people often run out of money near the end of the month and require financial reinforcements. Payday loans provide them with those reinforcements.

Advantages over Credit Card Drawing

This is a commonly raised question: why do I have to go through all the hassle of getting an entire loan just for a few days when I can simply draw money from my credit card? Well, sorry to bust your bubble, but the money you draw from credit cards is not your money. You borrow it, or loan it, from the credit card company. The loan, in that case, is much faster (instant, in fact), as the credit card company already knows all your personal details and deems you eligible. Also, know that the interest rates that are charged on your drawn amount on your credit card is high enough to make one shiver.

In an online payday loan, you only need to provide your personal details one time (the first time), and then on, your loan transaction will be as easy as simple as that of a credit card draw. You simply ask for money on the internet, and it will be transferred to your account directly. The benefit is that the interest you pay in payday loans is significantly lower than that of your credit card loans. Also, there are no hidden charges attached.

How to get one

The easiest to go about getting a payday loan is through the internet. Go to the numerous websites that offer payday loans and select one you like. The first time, you would have to create an account, provide them with your personal data and match the eligibility criteria. To be eligible, you need to be a citizen of the United States of America working full time or part time in a secure job that produces at least a thousand dollars in a calendar month. Also, you have to be at least eighteen years old and should not be a person working in the military.

Once you get the loan agreement signed and sent back, you will receive your loan money in a few hours credited directly to your bank account. You can then use it as you like, remembering that when you get your next salary, you would have to return the money out of that amount. You’re not allowed to repay a payday loan in instalments, so be sure you have enough money ready.

 

Lawrence is banking and loan management professional who has been handling various types of loans in a Massachusetts based bank for several years now. Here, he provides you with a detailed evaluation of the benefits of easy pay day loans.

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