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What's New In Payday Loans?

Payday loans, also known as cash advance loans, and other things, have now been around for a few years. The competition is fierce - which is good for the consumer, because it means that they must compete for customers and they do this by packaging the product with different incentives or advantages. Here are a few things you may want to know about what's new in payday loans.

Payday loans are available all over the web and in many towns and cities. If you have lived anywhere for a while, then you have probably received some advertisements about them in the mail - and in your emails, too.

A few payday loan companies have a nice incentive - you actually get the first one free of any interest. This is a great way to actually get a small emergency loan and be able to enjoy it interest-free. Typically these loans allow you to receive up to $1,000 per loan, but some will go as high as $1,500. For a first-time loan, however, you may only be able to receive about $400.

This type of loan is also called a signature loan, and that is about all you need, except for proof of employment. You also need to leave with them either a post-dated check, or sign an authorization form allowing them to withdraw the funds from your checking account on the due date. The only stipulation on the "free" part, is that it must be paid in full on the due date - then it remains interest free.

Besides this, some payday loans now allow a borrower to make multiple payments. In other words, you do not have to pay it all back at once. Most lenders of payday loans will require you to pay back the entire amount in two weeks. A rollover is possible with most, but there are always extra fees - usually equal to taking out a new loan. A lender that allows you to make multiple payments may give you up to four paychecks to pay it back - and at no extra charge. Besides this, you can even save some money if you pay it back a little early, making it even more convenient.

Bad credit has no effect on your ability to get a payday loan. Since your credit is never checked, and no collateral is ever taken, most people who are working can get one. In most cases, though, they do require that you make a t least $1,000 per month and have been employed at the same place for at least two months. With some companies, you will need to fax some information to them before the loan can be given.

Payday loans are a convenient way to get cash when you need it in a hurry. The interest rate, though, is high (usually between 25 to 30%). If you are willing to pay that high of an interest rate, then it certainly is a way to get your cash quick - sometimes in less than a couple of hours.