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Fast Cash Payday Loans vs. Traditional Loans

Although payday loans are somewhat like traditional loans in certain respects, there are many differences than similarities between the two. Like conventional loans, payday loans must be repaid according to the agreed upon terms but, seemingly, this is where the likeness ends.

When you think about a conventional loan, you probably think about a lengthy and detailed application, along with a complete review of your financial status and credit history. Following that, a lender will review the application and decide whether or not to approve the loan within several days. Payday loans, on the other hand, offer applications that typically take less than 5 minutes of your time, offer fast results and equally fast cash. In addition, the majority of payday lenders do not review your credit file, which means that an absent, limited or poor credit history will not likely hinder your ability to qualify for payday loans. In most cases, the funds from payday loans are transferred into your bank account within 24 hours.

When it comes to fees, the costs associated with payday loans are often more expensive than conventional loans. Payday loans often include the actual loan amount plus a fee based on the same. Most lenders charge anywhere from $10.00 to $30.00 per $100.00 loaned. In most cases, payday loans are available in amounts up to and including $1,500.00. Conventional loans, on the other hand, are issued with a preset interest rate and no additional fees. Without a maximum loan amount, conventional loans often provide for larger funding.

If you are trying to choose between a conventional loan and payday loans, your first consideration should be the amount of money that you need to borrow. If you need $1,500.00 or less and need this amount on a temporary basis and you have the ability to repay it quickly, payday loans may be the answer you need. If you need fast cash, payday lenders specialize in these types of loan requests.

When applying for payday loans, you will need a checking account, a regular job with steady income and you must be at least 18 years of age. When you apply for a conventional loan, you will still need a job with regular income and be at least 18 years of age, but you may also need collateral for the loan. Depending on the amount requested, you may be asked to provide tax returns, proof of assets and a host of information relating to your current net worth. When it comes to payday loans, your paycheck is your credit and no other collateral is needed to secure the loan.

The type of loan that you ultimately request will depend on a number of factors, including the desired loan amount, current income, ability to repay and the desire to repay it quickly or in payments. Most borrowers request payday loans for emergency purposes, including car and home repairs, doctor visits or simply when they need additional cash to carry them over until the next paycheck.

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Payday Loans In The News

U.S. Bank unveils payday lending-type loans for cash-strapped consumers

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Published:  Thu, 27 Sep 2018 04:36:00 GMT



Payday loans are part of a deeper problem that investors must help fix

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Published:  Tue, 18 Sep 2018 07:39:00 GMT



A major bank is offering payday-style loans. Will others follow suit

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Published:  Tue, 11 Sep 2018 14:48:00 GMT



While Feds Loosen Payday Loan Regulations, Colorado Voters Could Clamp Down

For a summary of November's most important ballot measures, click here. As the federal government walks back historic regulations on payday lending, Colorado voters this fall will be asked to tighten ...

Published:  Thu, 30 Aug 2018 12:04:00 GMT



Rock Island wants to limit payday-loan businesses

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Published:  Thu, 16 Aug 2018 18:25:00 GMT



9 Alternatives To Payday Loans

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Published:  Thu, 16 Aug 2018 01:20:00 GMT



Access Bank unveils PayDay Loan on USSD

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Published:  Sun, 09 Sep 2018 16:01:00 GMT



New payday loan bill could save the industry. Or make it more profitable.

For critics of payday lenders, a bill in the Legislature that would result in bigger loans and higher fees is a gift to a predatory industry. At a glance, they might be right. Floridians, mostly in po...

Published:  Fri, 02 Feb 2018 03:12:00 GMT



Reevely: City plans to treat payday-loan shops like strip clubs with new rules coming soon

Payday lenders could be treated like strip clubs in Ottawa by the end of the year - restricted to a few parts of the city and gradually squeezed out of downtown. "They bring nothing to the streetscape ...

Published:  Wed, 11 Apr 2018 14:43:00 GMT




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