PAYDAY LOANS – FULFILL YOUR NEED OF MONEY URGENTLY
WHAT EXACTLY IS A PAYDAY LOAN?
A payday loan is a kind of help to people who need some amount of money urgently and don’t have much time to apply for bank loans as it requires much time for the formalities. Basically, payday loans in Las Vegas are short term loans for amounts of $50-$1000, as per the state laws and which doesn’t require any kind of paperwork. One can borrow money from the storefront or even online sites are available in case of emergency.
DETAILED EXPLANATION OF SHORT-TERM LOANS:
- The rules for short-term loans are different as per the state laws, in terms of the highest amount and the maximum term.
- Payday loans are refunded in a single payment on the day of next salary which is normally two to four weeks but the specific one is fixed while the agreement.
- For the repayment thing, one has to write a post-dated check of the amount plus rate of interest to the lender or there is an option of providing electronic details of the bank account so that moneylender can automatically debit the amount on the due date.
- There is no need for heavy paperwork and documentation as other loans have needs.
- No collateral required for the security of money one lends and that’s the reason this loan is costly.
- Doesn’t matter if your credit scores are bad as it doesn’t consider the credit history of borrowers.
Though there are few features that rely on the laws as per the state rules, such as, at some places, there is no renewal allowed, whereas, few states permit a specific number of rollovers.
INTEREST RATE OF SHORT-TERM LOANS:
Payday Loans are normally very costly as the APR (Annual Percentage Rate) lies between 300% to 500% that can exceed if you fail to repay on time. But, some states have a law that regulates the maximum limit of interest a lender can take. That’s why one must be aware of each and everything about the short-term loans to prevent from getting into debt and check if your government has capped the amount and rate limit.
For instance; if you applied for $100 in California where an average APR is 450% for 14 days of term, which means the interest would be around $18. So, the total amount one has to pay would be $118 within 2 weeks.
APR can be calculated with the following formula:
APR= (Loan fee/Loan amount)/ (Loan days/365) *10000)/100
Normally, payday loans are for acute accountability for less than 30 days and amount goes
WHAT IF YOU FAIL TO REPAY ON TIME?
If the repayment of loan plus interest will not be on time, then it can be expanded to some extent but there would be extra charges that will be piled up with the amount you have borrowed along with interest. As there are various rules regarding the number of renewals, so you must be aware about that to avoid debt. After so many court cases in 2008, now there is more transparency in this industry as compared to the past.
What’s the procedure to borrow these emergency loans?
These loans can be borrowed from nearby stores, if one needs money at a time without any formalities. Otherwise, there is an option to borrow money online directly in a bank account without going anywhere, just in a few hours. There is only a need of few common proofs such as:
- Identity card
- Proof of salary (pay slips or transaction details)
- Social Security Number
- Age proof (must be above 18)
- Residential evidence (must be the citizen of US)
- Bank account details (for transaction purpose)
- Contact details (email & phone number)
Above are the common details that are needed for the approval of a short-term loan, else, depends upon your loan provider.
FEW BENEFITS OF EMERGENCY LOANS:
- The fastest way to get money as compared to other loans.
- Not many efforts required for the application and repayment of the amount.
- Getting approval is very easy and convenient, just in a few min