Pay day loans for your urgent needs
Every person in this world tends to face any urgent situation that needs money immediately. This is quite common among all categories of people and it is unavoidable. No one would expect any urgent occurrence or happenings that demands money immediately. But it does happen once in a while in everyone’s life. You can see the people from different background and different status of life needs money anyway. You may be rich or poor that does not matter, money is needed for the rich, the average and the poor. For those who have money they need it more and for those who have less money they need money at times in case of urgency and those who don’t have money needs it for both the survival and in case of emergency. Money rules the rich and poor, the satisfied and the needy in different ways. Forget about the rich who wants more, think about the average and the poor person who need money for their routine life and in case of any emergency.
Loans by Banks and Finance companies
If you have any emergency as we discussed above and if you are running short of money, there is no savings and your bank balance is low what would you do at the end of the day. The solution for this is loan system. Loan or credit is the money given to someone who is in need of money by the financial bodies like public and private banks, finance companies. Usually the credits given by banks are better as they charge only nominal rate of interest rather than the private finance companies. This is because all the public and private banks are regulated by a common Government authority body that differs from country to country. But the private finance companies do not have any such authorities to regulate them. They operate on their own.
Types of loan systems
We have different type of loans offered for different purposes. Following are the types of loans available for us:
- Mortgage – Loans given to buy homes.
- Auto Loans – Loans given to purchase vehicles like two-wheeler or four-wheeler.
- Personal loans – given for personal purposes like marriage, renovation or repayment of previous loans.
- Educational loan – offered for students to obtain degree or any other education.
- Pay day loans – Short-term loan availed for any urgent needs or in case of any emergency.
There lenders will ask different type of proofs, documents and securities from the borrowers to lend loan to them.
The popular pay day loans with pros and cons
The pay day loans are more popular these days than it was years ago. There are many lenders who offer pay day loans and the number of people who avail pay day loan is on the rise. It is the loan in which the lender offers money to the needy or the borrower for a short term repayment with high rate of interest. The condition is the borrower has to write a post-dated check for the needed amount and give it to the lender and the lender gives the money to the borrower as he agreed with the check given by the borrower. Here the borrower has to write the check not only for the amount he needs but also the exchange fee should be added with the money he actually needs. This type of loan is also called as cash advance loans or check advance loans. The date he mentioned in the check is the next pay date in which the borrower has agreed to pay the money he received as credit from the lender.
Though this loan is offered for high rate of interest, many people who needs money urgently opts for this pay day loans. Usually it is not advisable to avail pay day loans and it is advised to consider this as a lost choice. The fact is the pay day loan is available for the persons who need less money. I mean the people who need hundreds of dollars can avail this and those who need thousands of dollars would not be able to avail this loan as they offer only loan amount in hundreds of dollars; this makes the people practically not possible to spend more money or to buy big things or to spend money for many purchases. The amount offered is low but the rate of interest charged is high.
The advantage of pay day loans is the people who are hasty or greedy can’t avail this loan to fulfill their financial needs as the loan amount is average and less. The people with emergency situations and those who face some unexpected incidents all of a sudden which needs money as fast as possible and those who need money to buy things that are very important and unavoidable at any cost or any urgent payment needs like tuition fees, fixing the repairs in home or vehicle, etc.
Availing and repaying the pay day loan
The borrower can visit any pay day cash lending store to avail the pay day loan. The lender will provide loan application and the borrower has to fill it and enclose it with needed income proofs and bank statements so that they can confirm your income source and lend the money. There are application forms available for pay day loans on online; the borrower can use online forms if needed. The borrower gets cash on the spot and he or she is supposed to pay the money on the next pay date. If the borrower fails to do it, the lender will use the provided check to cash in the amount that the borrower is supposed to pay. If there is no sufficient fund in the borrower’s bank account the check will bounce and he or she will be incurred both the bounced check fee and the pay day loan amount.
The pay day loan has both advantages and disadvantages, and it is upto the borrower whether to avail pay day loans facility or not. It is quite useful for the person who needs cash urgently and does not bother about the rate of interest. It can be used as a last choice when all the sources are closed.