Payday loans - Features

Payday loans - Features

A payday loan is a financial instrument that gives consumers a small amount of dollars at high interest, through a short-term loan.

The borrower gives the lender a post-dated personal check for the amount paid plus a fee in exchange for cash. The lender cashes on the agreed date which is usually the next payday of the borrower.

3 main features of payday loans.

The loans are granted for small sums.

The amount should be canceled the next payday

You must provide the lender a check for the balance in advance, which the lender may charge where the date to pay the amount.

The cost of the loan can varirar between $ 10 to $ 30 dollars for every $ 100 borrowed dollars. The laws are different between the states of USA. Other factors can influence how much you can borrow and the fees they charge.

Process

The process associated cromprende a lender, which gives a personal unsecured loan to be returned on the next payday of the borrower.

Usually, this entails any verification of employment or income. The verification is done verbally through a phone call to the work of the applicant and also verified through pay stubs or bank statements.

Most of these loans without credit check, however, each individual company dedicated to make such financing online has its own guidelines for approval.

These days, thanks to the internet consumers have the opportunity to complete the application for payday loan online or in some cases when documentation is required, through fax or scanner. The loan is transferred through direct deposit account dle borrower and the loan payment electronically retires after 14 days which is when the debtor supposedly receive payment of his salary.

A process convenient and easy to understand application, customers have access to a financial option to cover small expenses, often unexpected. Borrowers can also choose to use this product to avoid costs of bad checks, overdraft protection fees, surcharges for non-payment of bills or other credit options less desirable in the short term.