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Taking A Payday Loan to Keep Your Credit Clean

A look at this and other things a payday loan can be spent for

Payday Loans No Credit Needed

payday loans no credit neededMany people turn to payday loans every day due to a lack of credit. Every now or then you may face yourself with a rough time and you might need some money fast to get through the hard period. One solution to such a problem is the payday loans. These short term loans can get you out of immediate trouble, but you should also know that there are some risks associated to them, Read the following lines to get a better insight into payday loans, how they work, their benefits and their risks.

First of all, you should know what a payday loan is. They are small loans which you can resort to when you face a temporary financial problem. The returning period is very short, usually two or three weeks and the amount of money is small (no greater than $1500). In order to obtain such a payday loan, all you have to do is write a check for that amount of money, plus the afferent fee. You will leave the check with the lender and he will cash it when you can repay, or if obtained online you will provide the lender with your bank routing information and authorize the lender to withdrawal the amount on a certain date. If at the moment of repaying the debt you cannot pay, the loan will roll over. In other words the period in which you must pay it is extended. If you do so, the fees accumulate and the total amount you will have to pay increases.

Because they are meant to save you from immediate financial problem, payday loans are very expensive. The annual percentage rate (APR) can reach several hundred percent. For example, if you borrow $100 for two weeks, you may pay $100 back plus a $20 fee. The Consumer Federation of America researched and reached the conclusion that the medium APR for payday loans is around 426%.

You must be very careful when taking such payday loans. That is because if you have serious financial problems, a payday loan, for its very high percentage rate, can make things worse. For the moment you may need that money, but the payment period is very short and the amount to be repaid is very large and as a long term strategy it can prove very dangerous. Payday loans can prove themselves useful, if, for example, you need the money to quickly repair a car which you use to make profit. If things are really bad and you cannot pay back the written checks, the bounced checks can end up on your ChexSystems file. If so, banks and retailers can see this and may refuse to do business with you in the future.

There are alternative financing options to payday loans. You can build up a reserve fund, in the form of a saving account you can use in times of need. Another thing you can do is to keep an open credit card for unexpected expenses. If you need more money on a constant basis, you can take up a second job. You can also discuss with your creditors to discuss a payment plan or you can choose an overdraft protection plan for your checking account.…

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Payday Loans Help People on Fixed Incomes

Many people mistakenly believe that only young adults are struggling to pay their bills. The prevalent opinion is that older adults have a large bank account that allows them to pay all of their bills with no struggles. The facts that are often forgotten is most older adults are struggling with problems paying ever increasing medical expenses, prescriptions, and the standard costs of living. Overall, this can result in a huge disaster for those who are not capable of continuously working in the workforce.
The solution to these problems is that these adults are often forced to do without. Many older adults simply receive a check once a month, once the money is gone there is nothing left that they can do. This often leaves many people without the medication that they need, and without the access to food and other basic expenses as well. For most older adults the option of getting a job is simply not possible.
For most older adults a payday loan is a good solution since their needs are short term until their next check arrives. Using payday loans can often mean a solution to getting behind in debts or losing the essential medications that are necessary. For older adults who have no other source of verifiable income often a payday loan is the only type of loan they can get. Many banks and other traditional lenders will not make loans to older adults who are not working because the category of lender is often considered high risk.
Payday loan companies know and understand just how stressful financial problems can be even for older adults and work with them to ensure that they also get the money that they need in order to make ends meet. Providing viable options to the older adults in the precarious financial situation often leaves glimpses of hope for those that are normally considered high risk. Of course helping to make it until the next monthly check can often be a life saving measure for many older adults and their gratitude to the payday lending industry is apparent.
For those who have no other options, payday lenders are often seen as little angels helping people to ensure that they have access to the things they need. Providing the loans to even the highest risk applicants regardless of job history and credit history means that the older adults who have been retired for the last 10 years are still able to get a loan just as someone who has been working for 10 days would be able to. Working with everyone regardless of income source is one of the major draws and attractions to the payday loan market and ensures a continued repeat clientele as people begin to rely more and more on the short-term loans offered.
Making ends meet is hard enough when you are working full time. For those who are unable to work and find themselves in a financial pinch being able to use the payday loans is often the only sign of hope they have. Getting the money you need, when you need it can mean the difference between life and death for older adults who must often pay for their own prescriptions. Servicing this special group of borrowers, the payday loan industry has made a great name for themselves in terms of the far-reaching benefits.…

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