What are Pay Day Loans? This is a process whereby a relatively small amount of money is lent at a very high rate of interest. With the agreement that the money lent borrowed will be paid when the borrower receives their next wages. There are so many companies that offer payday loans but before you apply for any, you should check the background of that company first and ensure you would be able to pay the loans alongside the interest fee before or on the agreed day.
However, not just payday loans but other loans are designed to be quick and generally easy to be qualified for once you have a job. And this Pay Day loan intends to help consumers or customers get money quickly for emergencies until their next paycheck. The loan can be approved and granted in the least time of 15 minutes. And in most occasions, the borrower writes a cheque for the loan amount and also the lending fee. For the loaner to hold onto till the agreed date. But keep in mind that it is not accepted in many areas. Therefore, you should check first if it’s okay in your state before going into it.
Are Payday Loans Legal?
In some locations, it is legal while in some locations, the practice is forbidden. Therefore, if your location or residential area doesn’t approve it, you should ensure not to be involved so as not to put yourself at great risk. But if your location or state allows it, you can go for it and be sure to pay back at the due time as agreed by you and the lender.
Requirments For Application?
According to CFPB, in order to qualify for a loan, you must be at least 18 years of age. Once that has been checked, you must also have an active checking account and also proof of income as well as valid identification. With all these, you can now apply for a PayDay loan with organizations or banks that offers it.
What Is the Biggest Pay Day Loans Company?
The biggest pay day loan company is advance America. Aside from this, there is two other very large pay day loan company which include; Check into Cash and Cash ‘N Go. But above all, Advance America is publicly held and it is considered the largest among the three top pay day loan companies. Well, aside from these three, there are still several other reputable Pay Day loans company you can take loans from. Some of these companies include; QC holding, Cash America, Dollar Financial, EZCORP, and many more.
Are Pay Day Loans Advisable to Take?
Pay Day loans are helpful but very dangerous for your financial health. Especially when you are already struggling to pay a previously collected loan. Also, considering the expensive fees payday lenders charge and the possibility to extend the loans. You can put yourself in a cycle of debt and then face a target of collection efforts for both.
How Can I Not Pay the Loans?
In order for you to stop the next scheduled payment, you can send the stop payment order at least three business days before your payment is scheduled. You can do that by making a visit to the bank personally or by making a call or sending a note to the bank. But to stop future payment, you would have to send your bank the order in writing.