They are presented, depending on the case, as a salary advance, a “boost”, a way of financing a favorite purchase or an unforeseen expense, or an alternative to a bank overdraft to make ends meet. Due to their very short repayment period, they are not consumer loans in the strict sense, but rather payment facilities. In the immediate future, their distribution therefore escapes any regulation, particularly in terms of pre-contractual information, verification of the solvency of borrowers or the level of costs.
These advance loans are accessible online, via a website or a mobile application. To reduce formalities and speed up the granting, lenders offer to share with them your bank account history. These instant mini-credits are generally very expensive, in terms of the amounts borrowed and the repayment period. A quick search on the phone by the term advance near me illinois can point at the right company.
Limited Amounts Repayable In the Short Term
This is one of the differences between advance loans and traditional consumer loans: the amounts that can be borrowed are limited. They usually start at 100 dollars and do not exceed 2,500 dollars. These are, in fact, very short-term loans: the repayment period is generally 3 months, sometimes less.
A Simplified Grant
One of the advantages of instant advance loans, put forward by distributors, is to obtain an almost immediate response to the request for credit, without having to provide supporting documents. To simplify the granting, the lenders ask the borrower to give them access to the online history of their accounts, by providing their bank identifiers in a secure manner. Thanks to the data collected, they are then able to assess their ability to repay on the spot.
Immediate Availability
Once the green light is given, the lenders offer the borrower the immediate transfer of funds to their bank account. Please note, however: this immediate availability is optional and payable. You can always get your best payday loan options in https://www.advancenearme.com.
Who Is Eligible for a Payday Loan?
In order to qualify for these loans, you must meet the following criteria:
- Become a citizen of this country
- Be above the age of 18
- Have a source of money, such as a job, a side business, or a salary.
- To qualify for financing, you must demonstrate a strong ability to repay your debts.
How Much Does A Payday Loan Cost?
The fees charged to users of instant advance loans are considered “negligible”, which also allows them to escape the regulatory framework of consumer credit. Compared to the amounts borrowed and the repayment period, they are however much higher than a conventional personal loan.
The fees charged by lenders are generally calculated in proportion to the amount borrowed: between 1 and 4%, depending on the actors and the amounts. Only one player, invoices fixed costs: from 5 to 20 dollars, again depending on the amount. Finally, in the event of repayment difficulties, borrowers are exposed to late fees, which are not immediately capped.
In most cases, payday loan providers tailor their interest rates to the borrower’s financial situation. Make sure you can afford this loan since interest rates typically vary from 0.08 percent to 2 percent every day. Even though personal loans and credit card borrowing are more expensive, payday loans may be more convenient.