Payday loans are also called check or cash advance loans and have grown in popularity over the years. It is its easy availability and its fewer formalities that have made this loan so popular when you need cash the most.

Basically, the lender and borrower agree that the loan and its interest will be returned on the borrower\’s payday. In case you get a payday loan, and fail to repay the loan on your payday, you will have to pay additional fees and penalties before you actually clear the loan amount.

Being aware of how interest generates on a loan, you can steer clear of borrowing from a lender whose rates are unfair.

Instant payday loans

There are various types of payday loans for you to choose your loan from. The most popular of them is the Instant payday loan which as the name suggests, are helpful when you need money instantly.

However its annual interest rates of 400-700% can cost you your savings if you don\’t repay your loan on time. It is only if you are confident of repaying the loan on your payday, that instant payday loans make a great option for emergency finance. These fax less loans are available online and are easy to apply and process.

One hour payday loans

There are also the one hour payday loans where you get your loan amount within an hour of giving your application. This is the best option for immediate finance where you just have to fill an online form with your details.

Once the lender verifies the details, the loan is sanctioned and the money transferred to your bank account.

The other popular payday loans are the cash advance, military, online, no-fax, bad credit and no credit check payday loans. They are all easily available when needed in emergencies via the internet. Loans applied for online are usually approved within 24 hours. The availability is just one of the ways that different payday loans come out ahead as leaders in the market.

Though the maximum loan amount for these loans is $1000, some lenders are willing to lend more money in certain circumstances and situations.

Alternatives to payday loan

It is advisable to explore all other possible and cheaper alternatives before settling on payday loans. Borrowers need to be aware that payday loans are extremely expensive to service and they risk becoming dependent on them especially when they operate under a tight budget. Possible alternatives include credits, either from credit unions or credit banks, overdrafts or credit card cash advances.

Being aware of the potential pitfalls can allow you to pursue taking out a loan with confidence. Making an educated decision is the way to avoid being the target of unnecessarily high interest rates.

While you should partially be expecting to pay fairly high interest rates through payday financing, you should not let yourself get excessively taken advantage of. Although it’s true that, to a certain extent, a lender offering this type of loan should be able to enjoy compensation for the risk involved by charging more interest than would be charged in a traditional loan, there comes a point when extremely high interest is simply exploitive.

I have been writing articles on many issues relating to financial independence and safety for a number of years. You can find my work by visiting one of my client’s official website here. I enjoy ice skating and visiting local museum’s newest exhibitions.

I have been writing articles on many issues relating to financial independence and safety for a number of years. You can find my work by visiting one of my client’s official website here. I enjoy ice skating and visiting local museum’s newest exhibitions.

Author Bio: I have been writing articles on many issues relating to financial independence and safety for a number of years. You can find my work by visiting one of my client’s official website here. I enjoy ice skating and visiting local museum’s newest exhibitions.

Category: Finances
Keywords: payday loans, simple loans, weekend loans, online loans