A payday loan is a short-term loan that is typically funded for amounts between $100 and $1,000 dollars. Payday loans are typically intended to cover a borrower’s expenses until their next payday. The borrower will typically request a payday loan amount, and repay that amount plus interest on their next payday. A Bridge Payday Loan allows customers to bridge the gap between pay days. Many consumers often call payday loans other terms such as pay advance, payday advance, pay loan, pay advice advance, and paycheck advance; though payday loan is the most common term used to describe this short term unsecured loan.
Whether it is an unexpected utility bill amount, a broken down car, a medical bill, shortage in the borrower’s general living fund, or an unexpected bill; a payday loan is a viable option to help cover the borrower’s expenses until their next payday. Payday loans are often a life saver in financial emergency situations where there is a shortage of cash, and bills/expenses to pay. Payday loans play a vital role in help millions of Americans meet emergency obligations between paychecks. The fact of the matter is that payday loans can have several benefits for consumers and when used responsibly can actually be a better alternative to late bill payments and fees, bouncing checks, disconnected utilities, or eviction. With the decreased savings levels for Americans, payday loans have become an extremely popular instrument in paying bills and living expenses.
Payday loans are available via brick and mortar payday loan stores and through on-line payday loan lenders. The process for on-line payday loans is very stream-lined these days, and borrowers are able to get cash deposited in their accounts from the comfort of their office or couch. In years past, payday loans would typically take a few business days to get approved and wire the cash to the borrower’s checking account; today it is possible for the borrower to get cash deposited to their account within a few hours. Traditional banks can often take weeks to approve and fund a short term unsecured loan, payday loans are able to be funded in a fraction of the time; typically in one business day.
There are thousands of payday loan lenders in the marketplace, so the borrower will want to ensure they utilize a reputable lender. Borrowers can check the reputation of potential lenders via the Better Business Bureau or by checking on-line for comments from other borrowers that used that lender. Typically, payday loan lenders will verify that the borrower has a valid checking account and they are employed; so that the payday loan can be repaid on the next payday.
As with any loan, consumers will want to ensure they borrow responsibly, and have a fiscal plan in place to repay the loan when their next paycheck arrives. Fees and rates vary from lender to lender and from state to state, so the consumer will want to ensure they fully understand the fees and rates being charged for the respective payday loan.