A payday loan can also be called a paycheck advance loan as it is a short term loan designed to cover any foreseen or unexpected expected expenses until you receive your next pay check. The legislation surrounding payday loans differ from country to country.
Unforeseen circumstances and critical expenses tend to creep up in all of our lives without any given warnings. Whether we like it or not, all we can do is just deal with them. It would be easier to deal with these situations if you were financially stable, however the question is what if you are not? Hence we like to introduce to you the concept of online cash advance or otherwise commonly known as payday loans.
Online payday loans are definitely a blessing as a short term help. To avoid getting yourself into trouble with these types of loans, it is best you understand every detail surrounding these loans before choosing to use them. Generally there are 2 methods of applying for a payday loan, they are:
a) Retail Lending loans – Describes the more conventional method of applying for a loan whereby the borrower visits the lenders office or store, fills out a loan application and submits the required paperwork. During the approval process, the payday lender conducts an assessment examination on the borrower. If the borrower passes then the loan will be approved. With this older method, the borrower is required to write a check that is posted dated for when the repayment is due and the loan amount will be automatically withdrawn from the borrower’s bank account on that date.
b) Online lending loans – This is the modern way of applying for a payday loan. It is much easier, faster and more convenient than the retail lending loan method. The whole application process is done online, the borrower does not need to leave the home. The borrower simply fills out the loan application and submits all the relevant details online. Once approved the money is deposited straight into the borrower’s bank account.
Today there are several types of payday loans that exist to cater for the different types of borrowers out there, these include bad credit payday loans, military payday loans, faxless payday and instant payday loans. Let’s explore these different types of loans in more detail.
To begin, let’s look at instant payday loans. These loans are very popular because of the quick speed at which the borrowers can get approval for a loan and get the cash immediately. To obtain this loan, a borrower applies online by entering their details regarding their employment and proof of income.
Bad credit payday loans are made available to cater for those with a bad credit profile. The payday lender does not do a credit rating check on the customer, as all is required here is proof of income from the borrower.
Military payday loans are designed for military civilians. The amount that the borrower can loan is dependent on their military rank.
Faxless or paperless payday loans are offered to borrowers over the phone or internet and no documents are required from the customer. There are other payday loan variety types as well such as one hour, twenty four hour and thirty day loans.
It is vitally important that the borrower remembers the due repayment date for the loan. The borrower can extend the repayment date if the loan cannot be repaid by then, however the payday lender might charge surcharges and late payment fees. The countries that do offer payday loans include Canada, USA, UK and Australia. The rules and regulations varies with the different countries.
Payday loans are a great short term option for financial aid, especially for those times where we receive unexpected bills, as long as the borrower if fully aware of their obligations and repay the loan on time to avoid turning this loan into a liability in the future.
http://paydayadvanceloans.com.au/ provides information and access to the best online payday loan lenders operating in Australia.