Submitted by: John Lee

WorldWideReviews

http://moneyemployment.worldwidereviews.com/PayDayLoans.htm

Payday Loans.

You’ve probably heard the advertisements on the radio or seen
them on the television or in the newspaper:

Need Cash Until Payday?

Whether known as “payday loans” or “cash advance
loans” or “payroll advance loans”, these are all part
of a relatively new type of short-term loan transaction. And
they are Hot.

Recent popularity.

Millions of people are finding themselves short on cash and
needing a little help to carry them to their next paycheck.
Payday loans may be helpful when you are having temporary
cash flow problems or are facing a financial
emergency and need money on a short-term basis. An
unexpected car or home repair can drain the cash reserve out
of an already tight budget. Many of these people need immediate
cash to purchase groceries for the family or gas for the car.
Payday Loan Companies can deposit money directly into someone’s
checking account, usually by the next morning. The speed and
ease of these transactions have made payday loans the first
choice for millions of people needing short-term cash loans.

How they work.

Most of the payday loans work something like this:

* You fill out a 1 or 2 page online form. This can normally be
done in just a few minutes.

* You provide a postdated check to the lender. This check is
held by the lender until your loan payment is due … typically
two weeks.

* The lender deposits your loan directly into your checking
account the next morning.

* In two weeks the lender deposits your postdated check, unless
you have already repaid the loan or received an extension.

It is really that easy. Typically the only requirements are that
you have a job, you have a checking account and you are at least
18 years old.

Not all payday loans are the same.

There are 4 bits of information about your loan that are very
important:

Amount Financed: The amount of credit provided to
you. This will normally be the amount of cash you will receive
from the lender. First-time borrowers can expect to qualify for
a $300-$1500 loan. Repeat borrowers can qualify for much more.

Finance Charge: The dollar amount the loan will
cost you. This is the interest you will pay on the loan.

Annual Percentage Rate (APR): The cost of your
credit as a yearly rate. Because these are small, short-term
loans, the APR is typically quite high.

Total Payments: The total amount you will have
paid after you have made all payments as scheduled. (This is the
amount that you will write on your postdated check.)

These figures can vary wildly between payday lenders. The Annual
Percentage Rate (APR) is especially prone to abuse. You should
treat payday loans as you would a new car … shop around for
the best deal! Someone looking to secure a payday loan
should fill out applications for several different lenders,
then accept the one with the lowest Annual Percentage Rate
(APR). Why pay more than you have to?

Payday loans at your fingertips.

It used to be that to get a payday loan you had to go to one of
the shops in the strip-malls and sit in a waiting room with many
others. Fortunately this is no longer the case. 2004 saw entire
online companies spring up solely to administer these loans. Now
the entire process can be completed in minutes from the privacy
of your computer.

Fraudulent websites & Potential Pitfalls.

Unfortunately, as with any innovative idea come the scammers.
Hundreds of “payday loans” websites have popped up, claiming to
offer the best deals. Many charge excessive rates for even the
smallest of loans. Other problems are:

1. Charging application fees (NEVER pay a fee to apply)

2. Excessive loan “roll-over” fees

3. Hidden charges

4. Zero help or customer service

Many of these SCAM sites won’t even respond to customer
requests. Eventually they get shut down due to too many
complaints, or the State Attorney General forces them out of
business. But the borrower is already locked into a bad deal,
and the SCAMMERS just open another payday loans site under a
different name in a different state. It’s definitely “buyer
beware”.

Yes, payday loans can be a real life-saver.

If you can stay away from the SCAM websites, and remember that
payday loans are meant for short-term emergencies and NOT for
long-term solutions, then they can really be a life-saver.

Before applying online for a payday loan, you should be sure
that the website satisfies the following minimum requirements:

* Well organized, easy to navigate sites.

* Helpful resources available for newcomers.

* Short, 1 or 2 page applications that can be completed in
minutes.

* No application fees.

* No credit checks.

* No hidden charges.

* Bad credit or bankruptcy not a problem.

* Loans deposited into checking account the next morning.

Copyright © by John Lee

Staff@WORLDWIDEREVIEWS.C
OM

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John Lee is owner and publisher of the acclaimed consumer
reporting website WorldWideReviews.

A free product review and watchdog service. Payday Loans

http://moneyemployment.worldwidereviews.com/PayDayLoans.htm

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