One Hour Bad Credit Payday Loan – Fast Cash to Pay Bills
Posted on | December 28, 2009 | 1 Comment
A one hour bad credit payday loan is a way for you to get some fast cash to pay bills today. There is really no quicker way to get fast cash than a payday loan. With this in mind it is important that you understand that the payday loan you do take out is going to cost you money. The need for money now is going to cost you in the form of fees and high interest. Most payday loans charge fees that are quite expensive.
Before you decide that a one hour bad credit payday loan is your best option it is important to understand how the process works. If you have never gone through a payday loan lender before it is a good idea to do your research and find out the worst-case scenario. One of the things that you will want to know is that your fees will reset every time you do not pay your payday loan off your next paycheck.
When you do get a bad credit payday loan you will write a post dated check for the amount of money you borrow plus fees. The amount of fees is usually regulated at the state level and is between $15 and $35 per every $100 you borrow. This may not seem like a lot of money but it can add up very quickly when you have borrowed several thousand dollars and you have missed payments on other payday loans.
The date on the post dated check that you write will be the day in which you are expected to receive your next paycheck. If you cannot pay this loan amount off with your next paycheck you will either bounce that check or you will have to go back to the payday loan lender and pay even more fees. The fees usually reset and you will pay them again.
If you have borrowed $100 with $15 in fees you will write a post dated check for $115. If your payday comes around and you cannot pay this amount you will go back in and you will write another post dated check for $130 because your fees will have reset and you will have to pay them again. This is why many financial planners feel that payday loans are not a good option.
Author: Heather Best
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December 30th, 2009 @ 5:08 am
If you have been refused credit because of CCJ’s there could be an answer, payday loans. Before we all start jumping for joy here are some facts to bring you back down to earth with a bump!
Payday loans are not for everyone nor should they be used to subsidise your salary, there are other ways in which this issue should be dealt with.
A payday loan is useful for those unexpected bills that fall on your doormat, a car repair bill for example. As long as the payday loan is repaid on time there should be no further problems.
People are put off using payday loans because of the high interest rate – the APR, this is the Annual Percentage Rate; the main word here is Annual. Payday Loan companies have to display the APR within whichever medium they use to promote their products, this I feel totally misleads the customer in to thinking that a payday loan is extortionate. To be honest you may find that a payday loan is no more, and in some cases, cheaper than other forms of “quick credit”.
The other benefits of payday loans is that they are relatively flexible, when it comes to the time when the loan is due to be repaid a customer could extend the loan, this is not an advisable move to make, usually rolling the payday loan over means that the outstanding interest is to be paid with the loan amount still being owed which means that the payday loan will still be due come the next payday. However this is an option. The other option is to part pay the loan when it’s due to be repaid, this means you pay the interest charge due plus some of the outstanding loan which in essence decreases the amount the borrower owes to the lender, which in turn cuts down the interest charged the next time its due.
The main factor that pushes a customer to choose a payday loan is that they are quick and accessible. Let’s face it, if you had the choice of either applying on line and being charged an extra 2 or 3 percent in interest and the option of physically going in to a town centre and applying which could save you that 3 percent which would you choose? I for one would use the comfort of my own home, it saves my legs and the stigma attached to the fact that you need some quick cash.
I found in my experience that if payday loans are used in the correct way, i.e. paying them back when due, they can be a useful tool to add to anyone arsenal when trying to beat the credit crunch.