What are Quick payday loans? A quick payday loan is a short-term loan whereby the lender will extend high interest credit based on the borrower’s income. This type of loan is also called a check advance loan or cash advance loan. The principle is always a portion of your next salary or wages. A quick payday loan works in a very easy and fast way. And lenders do not require any collateral before giving the loan, this makes a Quick payday loan an unsecured personal loan.
These types of loans have extremely high interest and do not consider the borrower’s ability to repay. And as a result of this, the loan can create a debt trap for people. However, if you are considering a payday loan, there are lots of safe lenders you can go to. Read to the very end to know how quick payday loans work and other important information.
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How Does Quick PayDay Loan Work?
The payday lender will require you to show your proof of income. Then they will borrow you a portion of the cash that you will have to pay. You will have to repay this loan in a short period, generally 30 days or even less. The Quick Payday lender takes a lot of risks because they will not check your ability to repay the cash. So, because of this, they usually charge very high-interest rates for this loan. And may also charge high fees if you miss the repayment dates.
How Do I Get a Quick PayDay Loan?
Payday lenders are usually credit merchants with small physical stores that enable on-site credit applications and approval. Some of the services may also be made available through different online lenders. To complete the loan application, you must provide a pay stub from your employer that shows your income. Quick payday lenders mostly base their loan percentage on the individual short-term current income. Generally, the lenders do not conduct a hard credit check or consider your ability to pay back the loan.
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Are Quick PayDay Loans Legal?
Yes, quick payday loans are legal. However, you need to know that, this loan comes with high-interest rates. So, this can be very dangerous for people because it can mean you have to borrow more amount to cover the cost of their first loan. That is why it is advisable to think well and compare rates before applying for this type of loan.
Are PayDay Loans Variable or Fixed?
Just so you know, you are required to pay back the quick payday loans in one lump sum payment when you get your salary or wages. So, because of this, the interest rate on the loan is fixed. Most lenders do not even show their charges as an interest rate, however, they instead charge a fee that can range from $10 to $30 per $100 amount borrowed.
Is Quick Payday Loan Unsecured or Secured?
Well, most of this type of loan is unsecured. This means you don’t have to give the loan lender any collateral or valuable item as you do in pawn shops. Instead, the lender will ask for permission to take money from your credit union, bank, or prepaid card account electronically. Mostly, the lender may ask you to write down a check for your repayment amount, when he or she will cash when the loan date is due. According to the law, a quick payday lender cannot condition the loan on obtaining authorization from the borrower for preauthorized fund transfers.
Can Quick PayDay Loan Debt be Forgiven?
Currently, it is very rare to see a payday loan debt be forgiven or written off. This is because the lender makes a huge amount from the interest that they charge on this type of loan. This means you should try as much as you can to pay back the quick payday loans as soon as you can. If don’t pay to repay the loan, your account ma forwarded to a collection agency, which will pursue the amount and the interest you are owing. It is not only an unpleasant situation, it can also add money to your debt and worst part damages your credit.
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