Have you ever considered taking out payday loans or cash advances for your financial needs? Payday loans are short-term loans that are limited in amount and intended to be paid back very quickly—usually by the borrower’s next paycheck. These cash advance are given in good faith, following the unique application process of each company. The borrower visits a payday lending store and secures the loan, returning in 2-4 weeks. Finance charges do apply on these loans and they can range anywhere from 15-30% of the total amount. Usually, what happens is that the borrower will write a postdated check for the full amount of the loan plus finance charges and other fees at cash advance online.

The borrower then has the option to repay the loan in person, or to wait until the lender processes the postdated check directly from the person’s account. What happens if the account is short? The borrower can expect a bounced check fee from their bank in addition to the costs of the loan, and the loan itself may also incur additional fees or increased interest.

This brings up a very real scenario possibility. If the person takes out a loan, and if no collateral is provided up front (such as a car or property) then what is the lending company to do? For customers that cannot pay back their debt right away, members of the national lending association are required to offer an extended payment plan, sometimes at no extra cost. In a few states, such as Washington, this legal option is actually required by law.

Recently, the Consumer Federation of America conducted a survey of 100 Internet payday loan sites. It discovered that most loans being offered were between $200 to $2,500. Meanwhile the average finance charge was between $10- $30 per $100 borrowed from the company.

This explains why many of these payday loan companies insist upon a qualifying process. Some of these companies check for credit. Some only pay attention to home-based credit items, like rent, utility or civil judgments. Some focus not solely on credit score but on employment history and living residence. It is usually customary for a borrower to provide recent pay stubs to prove they have a reliable source of income. In addition, renting or leasing history, as well as recent bank statements may be requested before the loan is granted.

Whereas in the past, cash advances were associated mainly with pawnshops and brick and mortar stores, in recent times Internet lending has been the primary focus of the payday loan industry. Nowadays, payday loans can be arranged entirely online. Credit can evaluated within hours of an online application delivery and funds can be transferred by the end of the day. This application (available online) usually asks questions regarding personal contact information, bank account numbers, Social Security number and employment information. In addition, check stubs will have to be scanned or faxed, along with bank statements and signed paperwork. When this process is approved the loan will be direct-deposited into the borrower’s checking account.

That’s one business day for a payday loan transaction to complete. It’s never been more convenient to borrow money. If you have a job or a steady income from some source, then you can ensure a payday loan with minimal effort. Many households have benefited from these loans and have borrowed money to pay rent, utilities, automobile payments and emergency medical expenses. If you are suffering from financial difficulty, try to contact a payday loan company on the phone, in person or online. For more information on payday loans, as well as terms and rates, look up local lenders online.