Payday Loan

It's been one of those weeks, hasn't it? The car broke, the air conditioning is on the fritz, and now your dog needs chemotherapy. Then on top of that, people you bought stuff from have the audacity to send you bills! If this scenario has ever happened to you then I'm sure you've looked into a variety of quick cash loans. Since you're at this site, I'm going to assume that you're currently considering payday loans.

If you've been to payday loan sites, you've probably noticed they're a little lacking in the information section. Some have FAQs (frequently asked questions), some have a contact page where someone might return your e-mail, but most simply dodge the questions and their more info links never have more than a sales pitch. So how do you find true information about a payday loan? Unfortunately, without actually applying for one, it's sometimes impossible!

Out of that frustration, My Payday Lender was born, dedicated to helping other consumers learn what's involved in getting a payday loan. First, the basics. A payday loan is simply a short term cash loan, which is why you may often hear one referred to as a payday cash loan. Rather than running expensive credit checks, a payday loan company will use your job as your payday loan collateral. You are more or less getting a check now ($100-$500), and you are paying it back on your next payday.

So what's the catch? Okay, so there's no such thing as a free lunch, except for maybe my little brother whenever we eat out. So how do these payday loan companies make their money? There's a nice fee attached to your payday loan. This fee generally costs between $30 to $90, depending on the size of your loan and how much of a risk your present to the loan company. How can you find out this fee before applying for a payday loan? Well someitmes you can't! This fee is difficult to compute until after you give the payday loan company enough information because they have to determine your default risk. Usually the best way to get this information is to fill out the application honestly, to the very end. At the end you will be presented with a fee and a loan amount size. Don't accept the contract if you don't like the fee!

So are payday loans really worth it? Define "worth it." Well, it depends on how badly you need the money. If you can definitely pay back the loan on your next payday, the loans aren't that expensive for emergencies. Paying $30 to avoid late fees on your bill can actually save you money if you are strategic enough. However, be careful not to miss payment on your payday loan. Doing so you will get an extension fee and you may not be able to pay this new higher amount on your next pay day. Eventually, this may even spiral into debt from a small payday loan. Be careful and happy borrowing!