Billings, MT 59105
Colorado Springs, Colorado
1826 E. Platte, Suite 203
Colorado Springs, CO 80909
Payday Loan – a Better No-Collateral, No Credit Check Alternative
The payday loan or paycheck loan comes as a tremendous blessing to anyone who went through some money problems in the past and know what it feels like to be without cash when payday is still a couple of weeks away. You yourself have probably experienced sudden financial needs like car repair, unforeseen medical bills or school fees when not enough money is available. It is during these moments that you’ll find a paycheck loan quite a lifesaver.
This type of loan is small, unsecured and short-term. It means that you are allowed to take out a small amount that is equivalent or smaller than the size of your next paycheck. You will not be allowed to borrow amounts higher than what your paycheck can cover as this will make repayments difficult.
It is unsecured in the sense that you are not required to put up collateral in exchange for the loan. This means you will be taking out the loan without risk while the lender will be taking all the risk.
Another reason why a payday loan is considered unsecured is because the lender will not subject you to time-consuming credit check. It doesn’t matter if you still have outstanding debts, pending checks, or even a bad credit history – you will still qualify for a loan.
Because of the unsecured nature of these loans, interest rates can be higher than that of regular loans. In fact, these loans carry a hefty price tag which ranges from 15% to 25% for every hundred dollars borrowed. If you think the price is too steep for you to handle, then by all means stay away from this loan.
Paycheck loans are short-term because you are expected to repay it fully including its interest on your next payday. If, for example, you are receiving your salary on a bi-monthly basis, then the time you have to settle the loan is just two weeks. If you get paid on a monthly basis, then you have a 30-day loan duration.
Lenders get paid through a post-dated check that you write to the lender during your loan application. You will also sign an agreement that in the event you fail to go to their office to settle your loan on an agreed date, they will use the check to withdraw the repayment amount in your checking account.
A payday loan is easy to take out but certain rules have to be followed. Failing to repay it on time will only incur more interest charges and possibly a lower credit score. GP