Why do Payday Loan Lenders Have High Interest Rates

Payday loans offer a quick way for you to have access to cash as these loans are designed to cover you when you fall short before payday. However, before you decide to take out a payday loan you will first need to know how they work, the fees and the interest that will be charged.

payday loans

How Payday Loans Work

Payday loans work by offering you a small amount of money that is given to you as a loan.

They are referred to as payday loans because the amount and terms are set in accordance with your income and when you are paid. These loans are engineered to be paid back when you get your next paycheck.

Payday loan lenders are usually found online and will offer users a quick approval process and the fund can even be transferred into your account within a day.

These personal loans might also work for those that have bad credit as the lender will look at your current financial situation and if you are able to pay it back.

Payday Loans Interest Rate

Payday loans will charge you a set amount in fees that work like interest rates. The fee that you pay for a payday loan can be quite high and you are often charged a 20% establishment fee and a 4% monthly fee.

There are strict lending guidelines for payday lenders that have been set out by the government in order to avoid irresponsible lending. The fees that you will pay for a payday loan are:

  • Establishment fee – this is 20% of the amount you borrow
  • Monthly fee – this is 4% of the amount you borrow
  • Government fees and charges
  • Default fees – the lender will charge these if you default on the loan.
  • Enforcement expenses – if you fail to pay the loan back, the lender will take you to court where you will pay.

These restrictions help in keeping payday loans manageable, but you should compare them to other credit options.

There are credit cards that do have interest rates of about 20%, but these are charged over a year and not over a month like payday loans.

The interest rates on a personal loan are generally between 8% and 15% and are a yearly rate.

With payday loans you will need to take in consideration your personal finances and if this is an affordable loan.

Benefits of Short Term Loans

Benefits of Short Term Loans

When you are considering a loan you will need to take in account the term of the loan, the amount you borrow and the interest rate charged.short term loan

Short-term loans will have larger monthly payments, but this also means that you will be paying less interest, as the term is shorter. Short-term loans can be a good choice. Here is a look at the benefits of short-term loans.

Less Interest

The longer that you owe money the more interest you will be charged as it is added over a longer period of time. With a short-term loan, you will be paying everything back quicker. This means that there is less time for interest to accumulate. You may find that the interest rate for a short-term loan is higher than a long-term loan, but in the long run you will be saving money.

Lower Interest

There are short-term loans that will not have a lower interest rate, but there are many mortgages with shorter terms that have a lower interest rate. You will then be saving money in terms of the interest charged and the time that it has to accumulate.


It is hard to know where your finances will be in the future. As a long term loan has a longer term you will be responsible for these payments far into the future no matter what your financial situation is.

It is then easier to budget and predict for a short-term loan.

Less Stress

It is hard to borrow money for a long period of time and watch as the interest mounts up. A short term does take that stress away as the debt will be paid off a lot quicker, so you can get rid of the debt burden easier.

Improve Your Credit Score.

Getting a short-term loan and paying it off each month is a good way to improve your credit score.

More Equity

With mortgage loans, a short-term loan will mean that you are able to build equity in your home a lot quicker.

No Collateral

There are short-term loans that do not require you to put up any collateral to secure the loan. This does not apply to mortgages though.

Fast Money

There are times where a short-term loan will take less time to process. If you need access to quick cash, a short-term loan could be the solution.

Own Your Home Faster

If you take a mortgage loan you are able to pay back the principal faster with a short-term loan. You are then able to own your home a lot quicker.

Advantages and Disadvantages of Bank Loans for a Business

Advantages and Disadvantages of Bank Loans for a Business

Bank loans can be used to finance operating capital, funds for expansion, inventory and equipment.


Bank loans are a tried and tested method of financing a small business, but banks will only lend to those that have substantial collateral and a long track record. The terms that they offer are also quite strict.

This is why it is a good idea to weigh up the advantages and disadvantages of bank loans.

Bank Loan Advantages

A bank will loan money to a business depending on the value of the business and the ability it has to make timely payments. Banks do not have a stake in the business in terms of taking ownership.

The bank will also not get involved in any aspect of the business or the running of it.

Once the loan has been paid off by the business then they will have no further obligation to the bank unless the owner wishes to take out another loan.

Tax and Financial Planning Advantages

The interest that is charged on a business bank loan is tax deductible. Also with a fixed rate loan, loan servicing payments will stay the same through the term of the loan. It is then easier for the business to plan for the loan and the monthly payments.

Obtaining Loans Difficulties

Bank loans are very difficult to get and is a major disadvantage. A small business will need to have a considerable track record or have valuable collateral.

Banks are only willing to loan money to businesses that are able to pay the loan back and in the event of default they want to be sure that they can cover their loss. This means that the assets of the business can be seized in the business fails to pay.

The Cost of Bank Loans

The interest rate that is charged on small business loans can be quite high and the amount that the business is able to borrow does not always meet the needs.

The interest rate that is charged on a loan can be high and can also stop business plans due to the fact that the business now needs to pay for the loan and interest as well as other business needs that the loan does not cover. Expansion of a business could then be stunted.

The Benefits of Personal Loans Online

The Benefits of Personal Loans Online

Generally when you needed a loan you would go down to your local bank and request the money, however with the use of the Internet the process is now a lot easier.online personal loans

You are now able to apply for a personal loan online. So what are the benefits of online personal loans?

Great for Emergencies

Many people will try to plan their expenses, but there are twists and turns in life and not everything can be planned for. There are times where people will need to borrow money quickly and they cant wait for a traditional lender to approve the loan.

Online loans are perfect for an emergency as it can sometimes take less than an hour to get the money.


Online personal loans are more convenient than traditional loans. The process is pretty simple, as you just need to fill out an online form and will not have to wait too long for approval. All your interaction with the lender is done online so you will not have to keep going to the bank.

Easier Access

Banks can be quite picky when they are lending money, but online services are not that picky so you will get approved for a loan easier as long as you have the right credit score.

There are some online lenders that will approve you even if you have a low credit score or have no credit history.

Plenty of Options

There are many websites that offer unsecured personal loans, so there is plenty of choice for a borrower. This then allows you to shop around and compare the interest rates.

Round the Clock Service

You are able to get an online loan at any time, as you will not have to wait for a bank to be open. All you need to fill in a loan application is an Internet access and a laptop.

Time Saver

Getting approved online for a personal loan is quick and easy. This will then save you plenty of time and effort. Pre-approval will generally take just a few minutes, whereas pre-approval at a traditional lender could take a whole day.

Cash Loans Online As Financial Solutions

Although more people are finding themselves stretched between paychecks, not everyone is aware that an online cash advance can help solve their problems if they use it responsibly. Cash advances are a service provided by lenders who supply borrowers with money to cover legitimate expenses that are not deferrable, such as food and rent. The lenders operate with the understanding that the loan must be repaid in full before the loan matures, which is generally anywhere from a week to a month after the loan is dispersed.

Generally, the borrower should be able to repay cash loans online out of the paycheck following the loan dispersal. Because of this liability, most lenders require proof of income before they agree to disperse the loan. Applicants who inquire online can submit an online copy of their bank statement or a pay stub as proof of income, while those who fax or mail their applications need a paper copy on hand. Borrowers who send digital copies of their documentation online usually have their inquiries reviewed more quickly than those who use other methods of application.

Cash loans are among the riskiest transactions for lenders and have the highest default rate among most loans. Because of this, the penalty for defaulting on a cash loan is high and can be devastating for borrowers who are unprepared. The lender explains the terms of the loan in full before the borrower commits to the advance, allowing the borrower to educate themselves on the expectations they are under and make certain that they will be able to repay the loan by the specified date. Borrowers can prevent defaulting on a cash loan by making sure that they do not borrow more than their expected salary.

Additionally, borrowers who request an advance just big enough to cover their required living expenses are less likely to default or repay their payday cash advance loans after the deadline. The cash advance should not cover toward expenses such as phone, television or internet. It also should not cover any bill or expense that the borrower can defer without significant penalty. When used correctly, cash advances can provide a great deal of financial assistance to those who need help short-term.

You Can Celebrate With Paydayloans

There is always some special occasion that cries out for paydayloans. A birthday or anniversary celebration, for example, needs to rise above the constraints of everyday existence. In most cases, these special days of our own do not fall conveniently on a weekend.

Imagine the allure of flowers or a romantic night out to dinner in the middle of the week. It shows that you truly did not forget, and that you are not going to be a slave to your workaday schedule. That is the whole point of special occasions. They are days when an exception to the normal rules is made.

Of course, exceptions are easier to make when the funds are available. Times are hard, and everyone is being pretty careful with how they spend their money. A paydayloan is really your own money anyhow. Instead of going out to dinner on a crowded Friday or Saturday night, you can do the same thing on the actual day of importance. You will definitely spend the money anyhow, so why not do it in a way that best shows how much you care.

The paydayloan industry makes it easy for you to stock up for the celebration. Simply use the internet at home, work, or on the go to quickly apply for your cash loans online or visit one of your local payday lenders and fill out a few elementary forms. There are no credit checks and virtually no chance of being turned down as long as you meet the few very simple requirements on this list.

* You must be a US citizen over 18 years of age.
* You must be gainfully employed or with some other continuing source of income.
* You need to have a bank account and, for online customers, an e-mail address.

As long as you meet those basic requirements, you can have a decision in about two minutes from the time you submit your application. Once you are approved, you sign your documents either in person or through an electronic signature online, and indicate where you want your money deposited.

Paydayloans allow you the luxury of caring when you want to care. You can celebrate the special occasions in your life when you feel like it, not when some payroll clerk wants you to. Why not set you and your loved one free with a paydayloan today, and let the celebrating begin in earnest.

Taking Advantage Of Payday Loans During Tough Times

Taking Advantage Of Payday Loans During Tough Times

During these difficult economic times, many consumers have become unable to make ends meet. Individuals are looking for ways in which they can earn extra cash to supplement their paychecks during especially trying times. People have been selling or pawning valuable items in order to buy groceries or pay unexpectedly costly bills. Others are able to survive adequately from the proceeds of their paychecks, but they are unable to handle surprise expenses like vehicle repairs or medical costs. The best solution for many of these people is to take advantage of payday loans. Because a person can obtain such a loan quickly, they are highly convenient for times during which cash is needed in a hurry.

Payday loans, which are also commonly known as cash advances, are basically small, short-term loans offered to a qualified borrower in order to cover his or her expenses for a time period leading up to the next payday. When payday arrives, the borrower is required to pay back the amount of the loan as well as charges for interest. However, the borrower can also choose to extend the loan, which gives him or her the opportunity to pay back the loan in installments effectively.

The vast majority these types of loans are instant payday loans. This means that the borrower can receive the money he or she requires instantly on the same day the loan application is completed. Because the expenses for which payday loans are required can arise suddenly, knowing that money can be received on the same day is an enormous relief for borrowers. Without payday loans, many people would be without the money they need when the unexpected happens.

Obtaining payday loans is easy. In most cases, the only things an individual would need in order to apply are a job and a bank account. There is very little paperwork to complete, and the process usually takes less than a half hour. Regulations are different in every state, so consumers should be aware that differences might exist in payday loan policies depending upon where they reside.

Without payday loans, many individuals would not be able to pay bills or buy needed supplies during tough periods of time. For those struggling to make it through from paycheck to paycheck, payday loans can be a literal life saver.

Payday Loans Online: A Convenient Solution

With the rise of the internet, an increasing number of people are applying for payday loans online. There are, however, a number of differences between these loans and more traditional payday loans. Like regular payday loans, online loans usually consist of small amounts of money intended to be repaid quickly. Interest rates are generally high, but are not charged if the loan is paid back within a minimum period of time. Unlike traditional payday loans, however, online loans are much more convenient. Online payday loans can be done from the comfort of your own home and most of the required documentation can be submitted online. Some brokers require little more than a few identifying pieces of information and your bank account number.

When Should I Take Out Payday Loans Online?

As their name suggests, payday loans are intended to provide financial assistance when payday seems like it will never come. Online loans are intended to help pay for emergencies and unexpected costs such as medical bills, automobile repair or funeral arrangements. Because they are subject to high interest rates and must be paid back quickly, they are not meant to be used as long term income solutions or to pay for ongoing costs such as mortgage payments, monthly bills or groceries. Before you take out a loan, it is important that you are honest with yourself about what you can afford. Never take out a loan that you do not feel you can repay within the specified period of time.

How Do I Take Out an Online Payday Loan?

As with any loan, it is important to shop around before settling on a broker. Look at the requirements, loan terms and interest rates of at least three different companies before making a decision. The application process itself will depend largely on the broker you choose. Most lenders, however, require that you are at least 18 years old, that you have steady employment and that your bank account is set up to receive direct deposit. Online lenders may be subject to additional state regulations, and it is important that you are familiar with local laws before you submit an application. Once you have submitted your application, you simply wait for your money. Most payday loans online will deposit the funds within twenty four hours of approval.

Payday Advance Advantages

Urgent life circumstances often emerge to induce consumers to seek immediate financial relief from a payday advance. It matters not whether a given crisis involves major auto repairs, medical expenses, or other budgetary crises. Sometimes, waiting until payday to get your hard-earned cash in hand is simply impossible. Such a delay could even prove fatal in some cases. Getting a payday cash advance online offers a great escape from present pecuniary predicament(s).

Despite heightened regulatory scrutiny and public criticism, payday cash advances are excellent alternatives to conventional “options.” Among the primary advantages of these short-term advances are:

– No credit checks required
– This payday loan aspect gives credit-impaired borrowers access to liquid cash infusions that would otherwise be “untouchable” by mainstream lenders.
– Lower borrowing limits
– Those wanting to borrow a negligible sum no longer have to risk financial over extension by obligating themselves to repay multiples of the desired amount to a traditional lender.
– Flexible repayment terms
– Most payday lenders offer due date extensions and additional cash advances to borrowers who require additional time or desire funds.
– Outstanding customer incentives

The business of extending no credit check loans is a competitive industry. To establish and maintain loyal customer bases, most prospective lenders provide discounts and other borrower loyalty incentives that were once unheard of.

Get the best of all pecuniary worlds right now by obtaining a quick payday advance online. Receive the funds you need practically in the blink of an eye without ever leaving the privacy and comfort of home. Virtual reality makes it possible to accomplish this at virtually no cost!

Benefits Of A Cash Advance Loan

A cash advance loan is a good opportunity if you do not have the time or the resources to get a loan from a bank to solve your money problems. Working with cash advance lenders is also more convenient than working with bankers. While there is a process to follow when you go to a payday loan center, it is much faster and more satisfying than trying to convince a bank to lend you money. The people at a payday loan center will not hassle you with a credit check either. Proof of employment is sufficient cause to grant you a cash advance.

When you realize that you need help in order to make it until your next paycheck, head down to your local payday loan agency and see if they can help you. They are going to need you to bring some ID and proof of employment. In most cases, a driver’s license and your latest paycheck stub will suffice. If you do not have one of these items for whatever reason, call the payday lenders and ask them what else will work and if they offer faxless payday loans so as to not have to make another trip down to the store. However you identify yourself, you will definitely need some way to prove that you have a job and receive regular payments. It will also be a good idea to bring your checkbook.

The payday lender will not waste your time with a lengthy interview. As long as you can prove that you have an income and a bank account, you will probably not have to worry about approval. Once you know that they are willing to work with you, you will have to decide how much you want to request. It will have to be an amount that is less than the amount of your next paycheck. This is due to the fees and interest that you will have to pay in exchange for the advance.

Once you have determined this, you will need to write a check for the amount you want plus the fees and interest. Post-date this check to the day that your next paycheck should arrive and hand it to over to the payday lender. He or she will give you the cash you need. When the date on the check comes, the payday lender will cash it in and the transaction will be finished. If you ever need them again, it will be that easy. If you have access to the Internet, a cash advance loan may be even quicker.

What Are Faxless Payday Loans?

One of the things that used to prevent people from applying for a cash advance loan was the cumbersome nature of the process. There were all those annoying paper document requirements. It seemed like you never had every single one of them the first time you applied. That meant an angry trip back home and a search through some dusty old boxes, followed by yet another trip back to the payday loan provider.

As the digital age slowly dawned, fax machines made the process even worse, if that was possible. You would get your paperwork in order and then sit helplessly in the corner while you waited for the fax machine to connect to the home office on the other end of the line. Sometimes, it took hours. Other times, it became a come back tomorrow sort of problem.

Fortunately, those days are all behind us. Online technology has made faxless payday loans the rule rather than the exception. The entire process has been absolutely streamlined and revolutionized to the point where you find yourself asking why you never tried doing this before. It is so easy and fast.

The no fax payday loans process now works in the following manner:

* Apply online at any time of the day or night. You can do it whenever it is most convenient for you and all of your financial papers will be right there beside you.
* Meet your loan provider’s simple guidelines for approval. In most cases, you need to be a US citizen who has a regular job or other steady and verifiable source of income. You also need a bank account and an e-mail address.
* Specify how much cash you desire to have advanced to you. There are no intrusive questions about how you will spend it. Once you are approved, it is your money to do with as you please.
* Wait for the lender to check your financial records and signal their approval. If everything is in order, this takes about 90 seconds out of your busy day.
* Upon approval, you will sign your loan documents online. There are no more fax machine problems to delay completion. You type your name in the box, check the notice that you are signing electronically and that is pretty much it.
* Receive your money.

Faxless payday loans have made the process practically foolproof. Take one out for a road test today.