Consumers in the USA can enjoy a choice of loans these days, from secured loans targeted at homeowners with equity in their properties to personal unsecured loans that are available to those that are renting or living with family and need to raise money for one of a range of purposes. You can get loans that are designed for all sorts of purposes, from consolidation loans that enable you to wrap up all of your existing credit into one convenient loan to home improvement loans that enable you to add beauty, practicality, comfort and even value to your home.
The repayment periods and interest rates on loans can vary depending on whether you take out a secured or unsecured loan, and depending on the lender that you go through. For example, the typical repayment period on a secured loan is between five and twenty five years, and with an unsecured loan the typical repayment term is between one and seven years, although some lenders offer up to ten years. However, what about people that want to borrow just a small amount of money for a relatively short period to tide them over until they next get paid?
2000 dollar loans or even more are becoming increasingly popular in the USA, and are designed to meet the needs of those that want to borrow a fairly modest sum of money for a short period of time. These loans do not usually involve an credit checks, which means that they are also available to those with poor credit – people that are not eligible for unsecured loans or credit cards in many cases. However you will need to be able to prove your income, your identity, and your address, as well as prove that you have access to a bank account in order to borrow with many payday loan companies.
When taking out a payday loan there are a couple of options open to consumers. You will find a number of payday loan providers on the high street, and you can take the necessary documentation along with you in order to get the money that you need. Once your documentation has been verified the money is usually available right away. You will also find online payday loan providers where all of the information can be faxed over and the money can then be transferred to your account either the same day or next day.
When it comes to repayment of the money that you borrow there are also a couple of options, although the loan provider will probably tell you how you have to repay your loan. Some companies ask that you leave them with cheques made out for the required amount, and these are then banked on a specified date. Other companies will ask that you set up a direct debit for the payment to come out of your account on a specified date.
Payday loans are short term small loans, and the amount that you can borrow can vary from one provider to another. However, the typical amount that you can borrow from one of these providers ranges from $100 to $1000. The idea is that you borrow the money for a period of one month until you next get paid. However, some providers will allow you to ‘roll over’ the money that you have borrowed, which means that you pay the interest on the loan for an extra month and get an additional month to repay the loan.
The interest rates in terms of APR can be very high on these payday loans. However, for most people this does not pose too much of a problem because the loan is taken out over such a short period. Most lenders (i.e. ExtLoans) will charge a flat fee per $100 borrowed, and the typical rate is around $10 per $100 borrowed, although this can vary from provider to provider. It is worth comparing different payday loans to compare things like the rates charges and the ability to roll over the loan, as this will help to ensure that you get a loan that suits you. Because there are no credit checks involved these payday loans are often well suited to those that cannot get a credit card or loan but need a short term loan to tide them over.
Consumers take out payday loans for a number of reasons. Nobody knows what lies around the corner and many people find themselves facing emergency situations such as unexpected bills or emergency repairs, often at a time when they have used up their wages yet still have a week or two left before they get paid again. Of course, you can always ask friends or family to help out, but for some people this is not an option or they simply prefer not to go cap in hand to family members or friends. This is where payday loans can prove invaluable and can help you out of a tight financial situation until payday comes around.