Payday loans rates on Mike Credit
Payday loans, also known as cash advance loans or check advance loans, are probably the most common type of short-term lending services designed to fill the cash gap between your paychecks when you urgently need money. Payday loans require no credit check, which makes them available absolutely to all categories of consumers, even to the borrowers with bad credit. Whether you apply for a loan online or go to the local payday lender, it works in the same way: you apply for an instant payday advance, write a post-dated personal check in the amount you want to borrow plus the fees applied, after which you receive money. The lender cashes your check on the set date, usually your next payday.
How to choose payday loan company
Although quick cash loans are certainly a life-saver if you got in a severe cash crunch, be careful when using them. Here are some facts about check advance loans that you should keep in mind.
- The interests charged by payday lenders may vary from 100% to 900%. Even if a $15 fee on $100 loan for 10 days seems ok, it becomes 657% when calculated on an annual basis.
- It is crucial to repay the loan in full by the end of the term, otherwise additional fees will be draconian, and you may end up paying in fees more than you initially borrowed.
- Cash advance loans are good for a one-time emergency, like a medical bill or a car breakdown, but using them regularly may lead you to the cycle of dependency, that together with the high interests will make your financial situation even worse.
- Consider the alternatives first. A conventional loan, a credit card or borrowing money from a relative will cost you much less and you will not run the risk of getting trapped in a quickly accumulating debt.
- The laws regulating payday loans vary in different states, and they often offer little protection for the borrowers. Make sure you have read all terms of the loan agreement to avoid possible surprises.
If you weighed all your options and determined that payday loan is what you need, use our loan finder to search for the best fast loans near you, or apply for a payday loan online.