Overdraft or Payday Loans?

Overdrafts often look more attractive to anyone in financial need. They offer low interest rates when covering the amount every month. What is overdraft – this is a way to withdraw from your account even when it is zero. Usually, you get your salary on this account. For the unpaid amount, you pay interest when the statutory period expires. Characterized with variable percentages charged on the unpaid amount Monthly and / or annual fees, one-off creation feeThis may be a more cost-effective way to borrow even from using a credit card.

Unlike overdrafts, Payday Loans are characterized by higher interest rates. These are quick credits for small amounts that you have to reimburse when receiving your monthly wage. The grant procedure is quick and simple. In some cases, you can apply online You pay a maximum of 20% foundation fee + 4% monthly fee for loans below 2000 dollars. Maximum opening fee of $ 400 + 48%  for loans between $ 2,001 – $ 5,000. Usually, the $ 100 fee is between $ 10 and $ 30.
In some banks, however, due to the lack of statutory regulation, the overdraft has higher interest rates and fees than Payday Loans. The customers of this loan often fall into difficult financial situations from which they can not go out.

As a conclusion, we can say that you must choose the correct way of crediting according to your needs and repayment options. Read carefully and look at all interest and charges, calculate them. Make sure which is the best option for us just as interest and fees, but also as a period of return of money, consistent with your monthly income. Look for information and reviews on the Internet.

Types of Payday Loans – Part II

Recently we talked about some different types of Payday Loans. You could read the article here – Types of Payday Loans – Part II. Today we are going to present you some other types of Payday Loans, so to be more aware what you could and should get when needing money.

Bad Credit Payday Loans – is a credit like any other Payday Loans, the difference is that creditors do not make a credit check to see if you have other financial obligations. This is a good chance for you when you can not get credit from a bank or credit card. Take your monthly salary and you can get your money within 24 hours. Taxes typically range from $ 10- $ 30 to $ 100, but as a customer of Bad Credit Payday Loans may be higher, the lender will judge.

Military Payday Loans – apply only to Armed Forces employees. You can borrow up to 40% of your salary. But here the rules are tighter for unfit borrowers – the punishments are dismissal and even imprisonment. Because of the high ethical code, the military staffing credit check is not carried out.

24 Hour Payday Loans – they are characterized by a quick credit granting procedure, the next day the money will be your account. The amount that will be granted depends on your income, most often between $ 100 – $ 1000.

Low Fee Payday Loans – This type of Payday Loans is characterized by low fees, as is also evident from their name. Sometimes the terms are tighter. The best choice for low-cost credit is a credit card, debt counseling, debt consolidation loan, or getting a personal loan from a bank.

30 Day Payday Loans – this is the right credit when your pay is monthly. Up to 5 business days are needed to view the money in your account. Terms and rates are like all other Payday Loans.

Paperless Payday Loans – these loans are made online or on the phone, no written evidence is needed. The borrower has a database where he gets the necessary information.

Be careful with Payday Loans, their frequent use means you need another way of financial support. Visit a bank and get professional advice.

Types of Payday Loans – Part I

When you have an urgent need for a small amount of money to help come to the Payday Loans. They are short-term receivables with an easy and quick release procedure. Here are some basic types:

Online Payday Loans – these are loans that are paid for about 14 days. You have to prove that you have permanent income by providing the sums for the received salaries for the last 2-3 months. There is a fee that is paid out of your account. Usually, the money arrives at your account for 24 hours. The period of return of the loan may be longer than 14 days, but then the fee will be higher. The most common fee is $ 25 for a $ 100 loan. Some lenders do not allow you to take a second credit until you have paid the first one, but others can offer you options.

No Fax Payday Loans – The advantage of this credit is that you can not apply online – there is no need to fax or mail. And here you are required to be over 18 and have a minimum income of $ 1,000 a month. How much will be awarded depends on your monthly income – $ 500 – $ 1000. Typically, the money is in your account for about 5 days. The payout time is 14,21 or 28 days. For a longer period, you will pay higher A fee must be paid, even if you can not refund the loan within the specified period.

Instant Payday Loans – These loans differ with a quick review of your application and of course a quick answer. It is not usual to check your credit history. After that, the creditors connect to you by phone or e-mail and receive the money the next day. As these loans are fast, the fee you pay is higher. This is an expensive alternative to getting urgent money. But sometimes it is the only way to deal with a difficult financial situation.

How To Use Payday Loans Wisely?

You have an urgent need for money, and you can not wait for bank approval and the only solution to the problem is Payday Loans. Easy procedure and quick approval, at the end of the day the money will be on your account. But do not forget that these type credits are just for emergencies. Be reasonable when you apply for them. And what do we understand under an urgent need for money? Here are some sample situations:

  • Money for medical needs. You can not risk your health and life because you have not yet received your monthly salary.
  • Cash for the instant repair of your car. With this car, you are most likely traveling to work or work meetings. So if the success of your work depends on the car, this is also an urgent need.
  • Money to cover monthly bills/electricity, water, rent /. No one can live without electricity or on the street.
  • Money to cover an old obligation to a bank, when not paying it will bring great interest and charges to you.

I think these are the most common cases in which it is wise to get Payday Loans. And which cases are not urgent to receive such credits?

  • Excursion
  • Christmas presents
  • A new car
  • New home furniture

Payday Loans are loans of small amounts with high-interest rates and fees. They are usually covered in short terms from the borrower’s salary. If you can not repay the loan, it is better not to take. If you do not have the urgent need for money, do not take it because you risk falling into the trap of these monetary institutions – to cover interest, fees, and the credit to grow. You are going to face a personal financial crisis, that you will find it hard to leave. Read the contract carefully before signing.

These “easy” credits are easy and quick to make but they can easily get back.