How do small payday advance loans work

People routinely ask what is a payday loan, and how does it work? Think of a time in your life when you needed to borrow a bit of money. Perhaps it was from a friend or family member until you got paid. Say it was $100. And when you got paid you paid them back $110 and said, "Thank you. You truly bailed me out" The same thing occurs when you apply for a payday loan. You are applying to get a loan against your next pay check. That's all. Of course, everyone brings up how payday loans have high interest rates. The reason they must have high interest rates is a due to the fact that people borrow money. Then come payday they don't pay it back. So, the lenders have to eat that loss. Or spend a lot of money search for and contacting the borrower trying to get paid back. So when you hear a payday lender saying they charge 10% a week. That seems outrageous. But if you borrowed $100 from a friend and paid them back $110 in a week it is also a 10% interest rate.

It is still important to note that these payday advance lenders don't simply let you just take any amount of cash from them. They want some promise that you will pay the loan back. You need to prove to them that you have a job. And, that you have a checking account. The job proves to the lender you have money coming in to pay them back. The checking account is so they can deposit the money into the account, then on payday withdraw their loan payment. The biggest problem with getting payday loans is people borrow too much money. If all they need is $200, but the lender says they qualify for $500. And they decide to borrow the full $500. Then come payday the lender take the $550 from their checking account and now the borrower is flat broke because their whole check was $575. So now all they have is $25 left for a week. So what do they do? Yep go and borrow another $500 to get them to their next paycheck. The lender lent them the $500, it was the borrower that wasn't responsible with their money. But the fact is that, the payday lender is the one appearing to be the bad guy. When all they did was help a person out by lending them money for a week over and over. Small short term loans are not designed to be a continued way of financing a persons life. They are just there for people if they are stuck and need to get to their next pay check. If you need a small payday loan we would be happy to help you get in contact with one of the lenders we work with. You can reach our application page from this link here. We are paydayadvancecredit.com and that is what we do. We help people get in contact with lenders.