Payday Loan Companies

Written by Serena Berger
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Payday loan companies provide fast responses to short term loan applications for smaller sums of money than bank loans, with which more people are accustomed. Payday loans are quite similar to a cash advance. You will have to repay the loan when your next paycheck comes in, but you will be able to spend your money as quickly as the business day after your application is processed.

Payday loan companies may seem like an antiquated idea in an era where ATMs rule supreme. But, in the event of an emergency that your bank account balance will not be able to cover, they prove that they still have their place in your financial arsenal. Whether you have a medical bill, a purchase that has to be made immediately, or any other necessary expenditure, you can have the funds in advance by applying for a payday loan if you will have the funds on your next pay day.

Rates of Payday Loan Companies

Payday loans are intended to have a very short term, lasting only until your next paycheck or the one immediately after is received. As a result, the interest rates charged by payday loan companies may seem exorbitant. The decision to apply for a payday loan should take into consideration the fees that you will have to pay, as this may negate the advantage of applying for the loan.

Though the cited rates are high, you may want to look directly at the dollar amount that you will be paying, as the interest rates are calculated with the time frame of one year. While the dollar amount may still be a little bit high, many times it will be worth paying a little bit to have essentially immediate access to funds that you might not receive for a few weeks. Payday loan companies give you the flexibility to have money at your disposal when you need it most, not when your company processes its payroll.

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