There are many times when you are facing a cash shortage and you are also facing an emergency situation. Perhaps your car needs repairs, or there was an unexpected medical emergency. However, it will be a few days before your paycheck will arrive. So what do you do?
You may want to consider payday loans, including payday loans online. Also known as short term loans, these are small, short term, unsecured loans. The basic process involves a payday loan lender providing an unsecured loan that will be repaid at the next payday of the borrower.
Many people are sometimes wary of payday loans because they really do not understand the processes or have been told there can be serious consequences if the loan is not promptly repaid.
Most payday loans require verification of employment as part of the application process. You will need to provide bank statements or pay stubs as part of the payday loans application process. It is interesting to note that bad credit will usually not eliminate you from obtaining these types of loans.
As for the consequences surrounding payday loans, there are situations where a person cannot repay the loan when it is due. Many payday loan lenders will allow you to roll it over to a future date. The loan is extended, giving you more time to pay back the loan; however, fees and interest will continue to accrue. Interestingly, the state of Illinois allows a person to hold payday loans for up to 45 consecutive days.
Also, many people have heard stories about payday lenders that have threatened criminal prosecution for check fraud. However, this is illegal in many jurisdictions and the practice is denounced the payday loans trade association, the CFSA.
When applying for the installment loans, make sure you read through all of the documentation. You should completely understand the repayment schedule, and more importantly, the interest rate that will be applied. While most payday loans lenders are reputable, you should still protect yourself by understanding what you are signing.
As you can see, payday loans can provide quick cash for the times in life when you are facing an unexpected expense.
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