Payday loans are an alternative to late fees and bounced check charges. Getting money quickly when you find yourself in a financial dilemma is vitally important. The loans offer a practical short-term, unsecured borrowing solutions that other financial institutions do not. They are located in expertpaydayloans.com every state.
Banks typically charge a fee between $35.00-$45.00 for insufficient funds in a checking account. The payee usually attempts to submit the check to the bank twice. Each time the check is submitted for payment if funds are not available in the account to cover the check, another insufficient funds fee is charged.
In comparison, the average fee for payday loans is $15.00 for the borrowed amount of $100.00 that equals 391% APR (annual percentage rate). A $100.00 bounced check with a total of $54.00 insufficient funds fees equals 1,409% APR. And lastly, a $100.00 utility bill with $46.00 late and reconnect fees equals 1,203% APR.
Payday loans offer the choice of applying online or in person. The form is easy to fill out and doesn’t require excessive documentation. Proof of income, proof that the customer is a permanent resident of the state, verification that he or she is at least 18 years old and proof that the customer has a checking account are the usual requirements.
Proof can include, but is not limited to:
1. Government issued ID
2. Residential lease
3. Utility bills
4. Bank statement
5. Driver’s license or learner’s permit
Most traditional loans are issued for a specific purpose such as a car loan. The loan qualification process can be long. One of the advantages of a payday loan is the fast processing time, usually the same day if all requirements are met.
No appointment is needed and the process is simple. A person’s source of income is used to determine the amount of money that can be borrowed. The customer’s personal and banking information is safe because regulations mandate that the information cannot be given or sold to other companies.
Customers then write a post-dated check for the full amount of the loan, plus the fees. The lender is then given authorization to debit the funds from the customer’s bank account, if they do not repay the loan on the due date or before.
Loan institutions are typically open after the banks have closed. It’s an unsecured loan that doesn’t require a credit check. There are laws that protect the borrower from being charged excessively high interest rates. They are a convenient answer to unexpected financial emergencies.