About Payday Loans

15 Aug 2013 Blog

Payday loan reviews are one of the best options to learning more about the services provided by a payday loans reviews lender. There are more payday loans online services available for anyone in need. The payday advance loans are a viable option while considering the best options to obtain money within a short period of time and bridge the large gap of waiting until the person has received their regular payroll paycheck. Many times emergencies arise that the borrower was not expecting. However, after the people receive their regular payroll employment check they will be able to pay the payday advance back without any incident. Consumer should look into the Payday loan reviews and comparing the lenders’ company’s payday loan interest rates to figure which rate is the best to choose.

History of Payday Loans

Payday loans came into existence well over hundred years ago before consumer credit was created and salary loan lenders offered a one-week loan at an APR (annual percentage rate) of 120 percent to 500 percent. However, over time as the lender companies followed the new state policies that were implemented to protect both the borrower and lender from any unsavory practices. There was an interest cap placed on how much APR interest the charged to the borrower.

There has been an exceptional growth and change from the federal government and the lenders to find the appropriate laws that will fit both sites. The reason why payday lenders have the ability to charge higher percentages is that this is an unsecured loan and it will be paid in a short. The short-term loans are postdated checks that the borrowers write to the lender who in turn will cash the check on the due date plus their added fees.

About Payday Loan Interest Rates

Interest Rates

The potential borrower should look into the payday loans interest rates reviews of the lender to figure which lender company offers the best with interest rates. Many lenders charge a triple APR amount on the loan and the lender doesn’t check the borrower’s credit stand because of the fees charged. The entire amount of the loan is due at the set due by the lender. Using a payday loan service is not a good option for those who are living paycheck to paycheck. It’s easy to become past due on a loan and some consumers take out to pay for the past due loan they need to pay for. Unfortunately this is a vicious cycle that causes the client to become severely delinquent on their paycheck advance loan. The best idea is for the borrower to ensure they have the means to pay for their upcoming payday advance loan and use the funding for any emergencies.

The interest rates of payday loan services are determined by the total amount the borrower is asking for and the service fee attached to the amount. The payday loans fees are regulated by federal law and state law. The interest rate is used through the APR (Annual Percentage Rate). The service fee charged is a one-time fee and it varies depending on how much is borrowed. The APR fees are higher because the APR is calculated by the amount of interest accrued each year and the payday loans will last for about two weeks to four weeks depending on the terms set by the lending service company. The payday lender chooses to express their fees though the use of the APR in order to follow laws set by the federal law. Users of payday loans will usually pay a 15 percent fee for every $100 borrowed. If the borrower is unable to pay for the loan by the due date then they can it rolled over or renewed giving the borrower time to get the money together to pay it back.

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