$300 Payday Advance Online
In a perfect life, every saver would have a well-stocked emergency account to deal with life's curve balls. You could then turn to it, when in the cold of winter your heater requires quick attention from a heating technician. Perhaps you have just had your big "oh no!" moment, and its result is a horrible dent on the side of your vehicle. Your savings would be waiting in the wings to save you.
In the real world, most emergency kitties are low and their users cannot use a line of credit or credit card to fund emergency cash needs. A lucky few will find a helping hand with their friends or relatives. This however is a risky proposition. Studies have found out that over 46% of all people that lend cash to family or friends end up with a negative outcome.
Most of them lose either cash or the good relationships they had with the borrower before lending. By taking money from loved ones, you could also ruin their credit score. One other alternative is a $300 payday advance online. These loans are easy to access and can help you meet that technician's bill, keep your family warm and fed, or fix the car so that you can stay on the daily grind.
What is a payday advance?
Payday loans form part of fringe financial services, which include other credit facilities like auto-title lending or installment lending. These credit facilities offer emergency cash to borrowers who are credit strapped. A $300 payday advance online business uses the borrower's next paycheck as a guarantee for the loan.
The payday loan's receiver will write a check for payment of the $300 loan and its financial charges to the lender and instantly receive the cash. These loans have a term of two weeks but are often renewable should the need arise. Renewal of payday loans is however very common. Data shows that over 80% of borrowers will renew or roll over their loans every two weeks.
Payday advance businesses are a common sight in states like California, that has over 2,451 payday lenders or Texas that has 1,675 lenders. Their proprietors refer to these loans by other terms such as check advances, deferred deposit loans, cash advances, or post-dated check loans. The key characteristics of these lending platforms is that they all offer minimal, short term but high rate credit at exorbitant prices.
According to Pew Research Trust, over 12 million US adults use these loans and they spend an average of $9 billion on them. The typical payday loan customer is a mainstream worker with $30,000 or less per year earnings. Since these cash sources are easy to access for the 76% of all US workers that live from one paycheck to the other, one in every ten US adults has used a payday loan facility.
How the online loan process works
Any person in need of fast cash will find it very easy to get a payday loan. All the requirements needed for this loan is proof of income, a valid identification document proving that you are an adult and a checking account.
The businesses that lend have designed easy and quick qualification and lending processes to ensure that their customers can have quick cash to see them through to their next paycheck. This is the reason why they are referred to as payday loans.
You can apply for a $300 payday advance online and have the cash in your account in a couple of hours. You can also get this loan in person should your state allow it, by issuing the lender your bank account details or a post dated check.
How to access a $300 Payday Advance Online
Your payday advance lender will have a website that holds their application pages. Go online and fill the application forms. Most of these forms are easy to understand and only require you to fill straightforward requirements.
Unlike banks that have a complicated loaning process and tons of paperwork, payday lenders only need basic information such as;
Age and date of birth
Your location, postcode, and address
Your contact details such as mobile phone details or email address
The amount of money that you need
Your checking account's details (where allowed by law)
Any other disclosure information such as filled bankruptcy
There are lenders also that seek other disclosure information such as marital status, purpose of the loan, employment status, and monthly income, name of employer, next pay date, existing loans, or work phone number.
As mentioned, payday loan processing is fast. Some lenders can send you your $300 advance in minutes. Some will take a few hours. If your form's are completely and correctly filled, you should have the money in your account in minutes if you are working with a good lender. You will receive an email in minutes confirming your successful application process.
The email will outline the advance agreement. Read it and ensure that your expectations are met to ensure that you do not fall into the crutches of a predatory lender. If the agreement works for you, give your lender a green light by electronically appending a signature to the loan agreement.
When the lender receives your signed application, they will send you the cash advance to the bank account that you give them. If you are in dire need of emergency cash use $300 payday advance online lenders that will release your cash, fast.
It is important therefore to perform an online research for lender reviews before choosing a payday lender. The operations of your bank could also hinder fast loan processing, so choose a bank that will process your emergency advances with urgency.
There are lenders that will automatically deduct the loan payments from your account on your payday. If this process is the most convenient for you, then enable it when applying for you loan. You can alternatively choose to send the lender his payments electronically as well.
Keep it in mind however that if you forget to payback this advance on time, you will suffer high penalty charges and adversely affect your credit score as well.
Why are payday advances so expensive?
You probably have heard of the debt trap horror stories associated with the payday lending industry. Borrowers are often warned that these easy money businesses have a fatal flaw; gargantuan fees that keep piling up, locking the person in need of help into an endless cycle of debt. It is true that these advances are expensive.
These loans are at least 20 times more expensive in terms of interest rates than your average credit card debt. Their annual percentage rate (APR) often labeled as fees or charges, range 300% to 500%. Credit card debt has an APR of 15 % to 30%. Personal loans APRs are even cheaper. Their APR only goes as high as 25%.
As an illustration, a $350 loan can attract an APR of 400%, which pushes it to a cost of $15 for each $100 borrowed. Some lenders often go overboard charging atrocious fees for their services with lenders in states like Ohio charging 667% APR. At the extreme end are predator lenders like one mentioned in a Guardian article that affixed a 6,734,509.4% APR to an advance. Should payday advance be this expensive?
Why are payday advances so expensive
Payday businesses say that their loans are expensive because they offer a high-risk credit facility. Unlike banks and credit unions, these lenders only perform soft credit checks on loan application. Most of them however will still extend credit to a person with a poor credit history. Such borrowers are often barred from banks and other microfinance institution's credit lines.
Soft credit checks only reveal minimal financial information and will not adversely affect your score, as hard checks do. A good payday lender's main concern is your ability to offset the loan on time. They will therefore affix a high interest loan rate to protect their business from failed re-payments. Consequently, good payday loans are a haven for borrowers with a bad credit history.
Unfortunately, there a bad payday lenders that are out rightly exploitative, affixing very high interest charges to their loans to entrap their lenders. Such lenders profit from high penalty fees and rollover charges meaning that those with less cash end up paying more for credit.
Most lenders make more profit from re-borrowed or renewed loans, and you will find borrowers that use the roll-over facility multiple times once they take out a payday advance. Consequently, the industry is plagued by high default rates and these borrowers will not have much left to save after the loan sharks have collected their pound of flesh.
Why then do borrowers use payday loans?
Despite the knowledge that some payday lenders are out to fleece them, payday loans are very popular sources of short-term loans. There is a school of thought out there, that the easiest way to gauge an area's financial health is not by its vacant shopping malls or abandoned houses. A proliferation of payday businesses is a better but subtle sign of financial distress.
When a borrower with a poor credit history is in need of emergency financial relief, they have no other option but to turn to payday lenders. It is said that necessity does not enter into bargains with cupidity, so $300 payday advance online lenders will always have takers. The trick is to only use ethical $300 payday advance online lenders.