Payday Cash Loan

By: EconomyWatch Content   Date: 25 November 2009

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A payday cash loan is a form of financing available on a short-term basis depending upon the loan seeker’s net income. It is important to note that loan providers do not lay much emphasis on the credit rating, while advancing a payday cash loan. The due date of this type of loan typically falls on the next payday.

Payday Cash Loan: How to Qualify for it

The eligibility criterion requires a payday loan seeker to have been providing his/her services to the same employer for at least six months before the loan application. The loan seeker must receive his/her pay through a direct deposit into a bank account. Also, the bank account of the loan seeker must reflect banking transaction for the last 60 days. The borrower should be a citizen of the US and above 18 years old. The rules pertaining to payday cash loans differ in different states. One can borrow up to $1,500.

Payday Cash Loan: How to Find the Best One

The choice of the finance company from which to take the loan depends upon the way you want to repay the loan. People who can pay off the full amount of the loan on the next payday should find companies that offer the lowest interest rate or service fee.

The rate of interest is determined by the rate applicable for a $100 loan for ten days. This could be the flat rate offered by some companies, irrespective of the term of the loan. However, it is important to go through the fine-print to know which rate you qualify for. For instance, if you get paid biweekly or monthly, you may not be eligible to apply for a rate applicable only for weekly payrolls.

A good finance company will grant you another payday cash loan once the previous payment has been cleared. The loan amount is deducted from your bank account directly in full, on payday. It is better to find a loan provider that offers a variety of payment plans. Some providers also allow loan seekers to repay the loan partly (including the interest rate) on the next payday. The principal loan amount gets carried over to the next paycheck automatically. However, in this method the interest gets accumulated and will cost you much more. It is advisable to use this method only when in dire need. Also, it is important to have a pay off plan for this loan at the earliest.


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