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Sunday, January 4, 2009

Guaranteed Payday Loans - The Facts

By Trinity Thomas

If you are in need of cash, but your paycheck is still a few days off, you may think about taking out a guaranteed payday loan from a lending institution. It can be the fastest and easiest way to get the cash you are in need of. It is a temporary loan that can help you pay your expenses until you get your next paycheck.

If this is the type of loan you're going to get, do some good research before you pick a lender. If the service is legal in your state, you have probably seen quite a few payday loan stores around. If it's not, you probably haven't.

Finance charges for payday loans are generally quite high. The typical amount of interest charged is 10% of the loan amount. This might seem like a lot until you take into consideration that the term on these loans is usually two to four weeks.

If you take out this type of loan, you have to make sure that you can pay it back within a reasonable time frame. If you don't pay it off on time, fees and interest will really start to stack up.

Some lending institutions will ask you to write a post-dated check covering the amount borrowed and associated fees. It is still your responsibility to go to the lending source in person by the due date of your loan and pay back the money. However, if you are negligent and dont pay back the money in person, they will most likely cash the check you left as collateral.

Bounced check penalties from your bank and the lending source could be applied if you dont have enough money in your account to cover the check so be sure to pay the borrowed back in full and on time to avoid unpleasant repercussions.

This type of loan is extremely quick and easy to get, but isn't usually recommended. If you take out a payday loan, use it with extreme caution.

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