Direct Payday Loans

Direct Payday Loans- An Overview

The trend of taking direct payday loans is increasing at a fast pace. There are more and more people applying for a payday loan to get over with the mid month money crisis. If you are one of those people who want to know everything about a direct payday loan, read on:-

What is a direct payday loan?

A payday loan is not a regular loan that you take from any bank. It is a short term loan which needs to be repaid within 7 to 20 days. A payday loan is also known as an instant cash advance or an instant loan or a paycheck loan etc. The loan amount is to be repaid once you get your next month’s salary. If you fail to repay your loan on time, you have to request the lender for a rollover but then you end up paying an additional interest and fees to the lender.

Need of a Payday Loan

It sometimes happens that someone in your family suddenly falls ill and needs medical treatment or you have to fix up your house or you have any similar problem for which you need some money immediately. These unforeseen or unplanned expenses need to be handled immediately. Since banks take a very long time in sanctioning a loan, the easiest way to tackle this money crunch is by applying for a direct payday loan.

There are a number of lending companies present online who are providing direct payday loans these days. Many banks and financial institutions have also come up with plans for a payday loan. You could both visit these banks physically to apply for the loan or sit back at home and apply online. All the lenders have a list of requirements which you need to fulfill to get the loan. These criteria are very easy to meet:

• Firstly you require to be an adult i.e. you should be more than 18 yrs old.

• Secondly you must be a US citizen

• You must have a checking account in any bank where you would receive your loan amount.

• You are also required to have a permanent job and a regular source of income, which is more than the amount you have borrowed. To be precise, your monthly income should be not less than $ 1000.

 Once you fit into all the above criteria, you can apply for the loan. If you need money immediately, you should plan the day of applying for it accordingly. Generally it takes a few hours to a working day to get your loan amount. In case you apply on Monday, you are most likely to get it by Tuesday. If you apply on Friday or Saturday, the loan process automatically gets delayed to the next Monday. Therefore be careful in calculating your urgency for the money and apply accordingly.
  
 Avoid Taking Direct Payday Loans 

A lending company is keen to provide you with a payday loan because it is very beneficial for them. They charge a very high interest rate on the loan amount which goes upto $30 for each $ 100 you have borrowed. This is how you end up paying much more than what you have taken. Although you can take a loan upto $ 1500 but think of the amount you would be required to shell out in the form of repayment. Therefore a direct payday loan is a kind of help which should be avoided in the first place. Each one of us should think of alternate ways of dealing with our emergency crisis and push payday loans as far as we can. If you have friends or relatives from whom you could borrow money, you should ideally take it from them to avoid extra payment. When you feel that there is no one who could lend you the money then only should you opt for a payday loan.

Certain things that you should be careful about before taking the loan:

• You must find out about the interest rate that your lending company is charging against your loan amount. Always compare the interest rates of a few lenders to get the best offer. Try to negotiate with your lender on the interest rate if possible.

• Read all the terms and conditions and the company policies of your lender carefully to avoid any future misunderstanding.

• Be very specific about the privacy policies of the lender. You must state clearly that you want all your information to be kept within the company records and under no circumstances be shared with any third party. If you have any doubt about your lender failing to follow their privacy policy, you should immediately look for some other lender rather than going ahead with the loan process with the current one.

Advantages of a Payday Loan

A direct payday loan has many advantages as well. Firstly it is very convenient and easy to get. All you need to do is apply online by filling up a form and money is directly sent to your bank account. Secondly the lenders are very prompt in sending the loan amount and you receive it within 24 hours of applying. Although the interest is high but when there is no other option, the lender could be approached to solve your money crisis. Once you get your money, you can spend it on anything as the borrower does not need to specify the reason for borrowing the money. With absolutely no paperwork involved, a payday loan becomes a hassle free loan altogether. The repayment process of this loan system is equally hassle free. The lender takes a post dated check from you at the time of providing the loan. The day your loan amount is decided to be repaid, he gets your check enchashed from your bank account.

Therefore, if you are stuck up in a money crisis which needs to be treated immediately, just go ahead and avail the benefits of a direct payday loan. Get stress out of your life and fulfill your dreams without any financial crisis coming on your way.