Direct Deposit Payday Loans

Written by Jeremy Horelick
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Direct deposit payday loans use the money coming to you in your next paycheck to reimburse your lender for his or her cash outlay. Because the money is placed directly in your checking account, and since your creditor has access to that account, you need never touch the money yourself in making sure your debt is repaid. Once the funds have posted to your account, your payday loans company will simply authorize the transaction to its account.

As soon as the funds are replenished in your creditor's account, you're eligible once again for direct deposit payday loans. In fact, each time you successfully pay off a loan, you raise the ceiling on your credit line, just as you would with a standard credit card. Even so, your maximum amounts will continue to be defined not only by your payment history, but by your salary as well. If you make 500 dollars a week after taxes, you won't qualify for a 1000-dollar advance.

Reasons for Direct Deposit Payday Loans

Contrary to popular opinion, most direct deposit payday loans aren't taken to purchase drugs, booze, and prostitutes. The average applicant is between paychecks and staring at some form of household emergency such as plumbing or electrical problems. While renters tend to have handymen on call to service units for free, homeowners are generally forced to pay for their own maintenance, which can be costly.

Another popular reason for direct deposit payday loans is covering checking account shortfalls. Perhaps you've written a check to a utility company or some other service provider and know that check will be drawn on in the next few days. Unfortunately, there are insufficient funds in your account to cover those checks. Payday advance loans can give you the cash you need to cover the checks you've already written and mailed, though this system can be a poor one to depend on as a long-term solution. After all, you never know how fast the mail will move or how quickly your recipient will draw on your funds.

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