|
A payday loan (also called a paycheck advance or
payday advance) is a small, short-term loan that is intended to
cover a borrower's expenses until his or her next payday. The loans
are also sometimes referred to as cash advances, though that term
can also refer to cash provided against a prearranged line of credit
such as a credit card. Legislation regarding payday loans varies
widely between different countries and, within the USA, between
different states.
Some jurisdictions impose strict usury limits, limiting the APR that
any lender, including payday lenders, can charge; some outlaw payday
lending entirely; and some have very few restrictions on payday
lenders. Due to the extremely short-term nature of payday loans, the
difference between APR and effective annual rate (EAR) can be
substantial, because EAR takes compounding into account. For a $15
charge on a $100 2-week payday loan, the APR is 26 × 15% = 390% but
the EAR is 1.1526 - 1 × 100% = 3686%. Careful reporting of whether
EAR or APR is quoted is necessary to make meaningful comparisons.
Top Ten Cash Loan Companies - Best Payday Loan
Providers - 2008 / 2009
1. Cash Central
2. Mypaydayloan.com
3. Cash-in-1-Hour
4. iPaydayLendings
5. Cash Advance Network
6. We Give Cash
7. PaycheckToday
8. NationalPayday
9. Guardian Payday
10. 1 Hour Cash Advance
Be careful of cash advance and pay day loans in
terms of the interest rates. Always check all the paperwork
and agreements before you sign. Check the reputation of the
lender. There are a lot of bad operators in this business so
always make sure that your pay day loan is authorized, fair and
properly documented.
Top Ten Important Considerations Before
Obtaining a Pay Day Loan Cash Advance
1) Do you really need a Payday Loan?
2) What is the length of time you need a cash advance for?
3) How much money do you need to borrow?
4) Do you meet the criteria for a payday loan?
5) Are your wages paid directly into your bank account?
6) Can you afford to pay a payday loan back?
7) Are you aware of the different processes involved in applying for
a payday loan?
8) Are you aware of the cost of a payday loan?
9) Are you in a position where your credit and debts are getting
uncontrollable?
10) Is a payday loan your best option?
|