A payday loan or in other terms, Rapid Cash is a short-term loan intended to relieve a borrower of his or her expenses within a short period of time until their nest payday, usually within two to three weeks. The loans can as well be called cash advances as they help before one gets paid at the end of a designated period. Legislation that governs the payday loans varies widely in different countries and businesses offering the lending services.
The loan process is always simple; the lender provides a short-term financial aid to be repaid at the next payday of the borrower. Verification of employment or income has to be done by the lender, though, some lenders might find this unnecessary. Criteria of verification vary among franchises and companies.
In cases where emergencies arise especially before payday, one is likely to be left strapped if he or she is inadequately prepared for such instances. Opting for an additional financial aid therefore becomes necessary when such occur and there is a dire need to eliminate effectively such emergencies. Payday loans avail a wide range of short-term loans that will enable one to have finances in no time.
Rapid Cash Loan Verification and Provision by Lenders.
Most of the companies have certain criteria of verifying the credit worthiness of prospective customers. Some will scrutinize the age of the customer (one should be at least 18 years of age), have an active checking account and earn at least a good amount of money that will guarantee pay back of loan at the end of the given period. Sometimes, some businesses do not need pledging of any form of collateral or signing of binding documents. A choice on the best and convenient means; either online or manual, or a type of organization to seek aid from will thus vary according to preference of the consumer.
This loan provides an easy and fast way of getting hold of enough money whenever there is a dire need to have a financial solution to a hardship. If ones paycheck may be a few days or weeks late or the due time period is extended, this form of loan comes in handy as the perfect solution to such problems. Some businesses offer an option for online sign up for the money which is very convenient whenever there is a geographical constrain or work schedule does not guarantee free time to check physically into the premises of business involved. The finances are later deposited into the bank accounts by the next possible business day.
One can at times be in a position where he or she is unable to repay fully the amount of loan at the end of the next paycheck; it fortunate that cash advance can be repaid in bits depending on the agreement between the lender and the borrower. In such a case, the loan is reissued into a new loan severally as per the preference of such borrower so that they can pay back the amount at their own time of preference. This kind of set up also depends on the lender involved.
Several personal services are provided by such lending businesses including: financial advances, payday loans, check cashing, prepaid debit cards, auto equity loans, money for gold services and title loans. Advance loans are given regardless of account of borrower, credit position thereby providing financial aid whenever one is faced with unexpected expenses. The choice of the type of loan will be on the customer as there is a wide variety provided.
If one is interested in a fast loan service, online application is recommended, a decision is displayed within a few minutes. Instructions are then given on how to sign electronically a credit agreement. The money is then sent within a few hours within the same day if it is within business hours.
Rapid Cash Loan Application Process.
In online payday, consumers are required to complete the loan application online or via fax, especially where written documentation is required, the loan is then directly deposited into the account of such borrower. The repayment or the charges are electronically withdrawn on the next payday of prospective borrower. Ensuring that payment is done within the stipulated period is important so that one does not have to pay the fees on delayed repayment.
Borrowers interested in the loans visit the lending stores and secure a small amount of money, of which payment should be made at the end of the next paycheck. The borrower is needed to write a postdated check of full amount plus any additional fees if any. If the borrower is unable to repay the amount in person, the lender then has a choice to redeem the check. If there are insufficient funds in the account, the borrower thus faces fee of a bounced check and an additional cost of the loan.
Other options are availed to payday customers. They include pawnbrokers, credit union loans which have low interest rates, paycheck advances, small consumer loans, credit payment plans, emergency community assistance plans, bank overdraft protection, paycheck advances from employers, direct loans from family and friends and advances from credit cards.
Rapid Cash Related Legal and Legitimacy Issues.
Payday loans covering bad credit are specially designed to help borrowers who are suffering from:
- Credit difficulties
- Late paymen
- Bankruptcy and other finance related problems.
Applying for debit card payday loan is efficient and deposition is made into ones account immediately approval is done within a few hours later within business hours and repayment period expanded to two to three weeks.
Consumers can be sure that the services offered by Rapid Cash businesses are legitimate and no exorbitant interest rates exerted as some jurisdictions limit the annual percentage rate of payday lenders or any other business dealing in lending can charge on the borrowed cash. Some jurisdictions outlaw payday lending entirely and have a few restrictions on payday lenders. Due to the shortness of lending period posed by the lenders, the difference between annual percentage rate and effective annual percentage rate can be substantial because effective percentage rate takes into account compounding at the end of the financial year.