Payday Loans Lenders – One Of Many Options For Financial Assistance
Everybody gets into a financial pickle of some sort every now and again. When a sudden shortfall happens, such as having to replace a flat tire or fix a water heater and one doesn’t have the funds, one has options. If one doesn’t have sufficient cash or savings, that means borrowing money. There are plenty of options for that, such as credit cards, personal loans or payday loans lenders. A person should consider their options and find the financial instrument that fits them best.
Online or Brick and Mortar
It used to be that payday loan lenders only existed at brick-and-mortar stores. Many still are, in many cities, and a person can go in during store hours and take out a loan until their next payday. However, there are also online payday loan lenders, where one can apply for a loan and get the funds via direct deposit, wired directly to their bank account.
The latter can be more convenient, as one doesn’t have to go anywhere or write any checks. However, online lenders can sometimes require additional documents be faxed to them before approving the loan since, after all, they are approving a loan for an applicant that is sight-unseen, possibly thousands of miles away from the online payday loans lenders approving the loan. However, payday loans lender s often require much less documentation than traditional lenders, such as banks, and don’t check credit.
Different than other forms of credit
Payday loans are different from other forms of credit. With credit cards, one has a hard ceiling on how much they can borrow, but through minimum payments, can carry a balance in perpetuity without paying it off. With many personal loans or installment loans, one often has a term of up to several years to pay the loan off. Payday loans have a much shorter term, often two weeks or less or the borrower’s next payday, hence the name.
Given the short term of the loan, payday loans carry a much higher interest rate than conventional loans when expressed as an annualized percentage rate or APR. A loan from a payday loans lender will typically have a finance charge per amount of money lent, usually a fee per $100. A fee of $15 per $100 for a two-week loan, a common rate at payday loan stores, works out to 391% APR. By comparison, a $34 NSF fee for a bounced $100 check, paid within 10 days, is 1,291% APR.
Picking what is best for you
It behooves consumer to choose financial products that are right for them. The person who needs money right away, doesn’t want much hassle and can pay it back, safely and responsibly, within a couple weeks, might be well served by payday loans lenders. Match Financial partners with a wide variety of payday loans lenders to find the best loan, lender and terms for a borrower’s individual needs.