Till now, you may have heard that payday loan is best financial answer if you are facing any exigency. But before submitting loan application form to borrow this loan, you must be clear about what payday loan
actually is and in how many forms does it exist in economic market. Along with that it is also very necessary to be aware of some of its pitfalls too. Before applying, you must be clear that for how long will you rely on loans? How much amount do you need to handle urgent expenses? When will you be able to return back loan amount along with calculated interest to lender? Can you bear 400 percent APR and can you pay back before next salary day?
Payday loan processing is so fast that sometimes applicant receives instant online approval. All they need to verify is that if applicant is 18 years old Canadian citizen, and makes at least $1000 per month by working under same employee since last three months. Even if someone has bad credit, payday loans do have option for them.
Confused about types of Payday Loans – Get your Queries answered here
Payday Loans Types
Online Payday Loans
An online payday loan is a short term payday loan lasting for 14 days at APR of approximately 400 percent. It is supposed to be returned to lender by cutting total amount plus calculated interest from borrower’s bank account. It just requires proof of employment to get sanctioned. Under these loans, borrower receives loan amount between $100 and $1000. Amount that user can borrow can be estimated on the spot after knowing his employment and income details.
These loans assure to deliver cash within 24 hours unlike traditional bank loans which take 3-5 business days to lend cash. As long as borrower meets repayment criterion, there will be no credit check run. Loan amount is usually issued for a time period of 14 days. Undoubtedly online payday loans can be used for regular expenses such as buying a car but cannot be used for other purposes.
No Fax Payday Loans
A no fax payday loan is slightly different from online payday loan as they do not require anything to be faxed by borrower; every single step is carried out online. They generally range from $200-$500, but in extreme they can also reach up to $1000. They don’t check credit history. As soon as application gets sanctioned, cash is transferred to borrower’s account. They don’t have any restriction. It solely depends on borrower that how does he wants to use loan amount.
Instant Payday Loans
Though every kind of payday loan processing is fast but instant payday loans ensures most speedy review of loan application. Lender immediately contact borrower via email or phone to complete the process. Cash is also transferred immediately if an applicant comes out to be eligible for this type. Loan amount can cross $1000 under these loans as per applicant’s requirement. It all depends on Lender that whether he will let borrower to borrow multiple instant payday loans or not.
Bad Credit Payday Loans
Bad credit loans are specially designed for those borrowers who have bad credit or simply zero credit score. Thus it is a golden opportunity for those who fail to qualify for bank loans because of their bad credit history. Time period for these loans can exceed to 21 or 28 days. Loan amount stays same as for other payday loans types. Depending lending policy, an applicant increase loan amount and loan length.
Military Payday Loans
They are specialized short term loans meant for military personnel. However, they have strict rule implications as according to Military justice article 123a, military personnel who fail to meet loans criterion can be subjected to confinement, transfer, court marshal or even discharge. An applicant can borrow up to 40% of monthly take depending on rank. Cash is transferred within 1-5 business days. Money is usually transferred via Western Union or wine transfer. Via western union, cash can be received immediately however wire transfer takes at least one business day. Military payday lenders do not subject military personnel to any credit checks. None other than a military employee can apply for these loans. Fee varies from $10 to $30 for each $100. Military lenders do not put any restriction on military loan usage.
24 Hour Payday Loans
A 24 hour payday loan is an advance loan on borrower’s paycheck for which he pays fee. It ensures that loan processing is so quick that money will be in borrower’s account within one business day. So, an applicant can make withdrawal of required amount from checking account on the following day. Any applicant eligible for regular payday loans can apply for 24 payday loan. There is no restriction on money usage and repayment is expected after 14 days or 21 days depending on lending institution.
1 Hour Payday Loans
As the name implies, 1 hour payday loans processing is so fast that is completed within one hour. All what is needed is to fill out online application form. After submission of form, within one hour applicant receives loan offer via lender. Some 1 hour payday lenders wire loan amount to borrower’s bank account for an additional fee. They are known as highly interest acquiring loans as APR reaches approximately 700 percent for these loans.
These loans; processing is carried solely online or telephone. They do not require any proof in paper form from borrower’s end. Paperless payday lenders collect all the information form applicants on the phone. Thus, this process is comfortable and convenient for both lender as well as borrower. Exact amount that borrower can borrow depends on his income. These loans get sanctioned within minutes and borrower receives required cash within one business day in his bank account. They charge financial fee instead of interest rate. It ranges from $10 to $30 per $100 borrowed.
Depending on one’s urgent requirement, one can apply for any of the above mentioned payday loans. But keep in mind that repayment consequences stay almost same for all kind of loans. So, be sure regarding payback before submitting short term loan application.