Payday loans or cash advances have been considered to be an easy method of getting some liquid cash. This type of no hassle loans online was originally meant to help the borrower take care of the expenses before the next payday comes around. Be that as it may, the money can be used in any way you want. There are many benefits of payday cash advances that you might already be familiar with. However, there are certain facts that you might not know yet. Here are some of them.
It Is a Young Industry but Has Massive Coverage
It is easy to believe that payday cash advances have been around for a long time. After all, they are so convenient. However, the fact is that they are relatively of recent origin. This type of loan originated in the decade of the 90’s. That is almost 20 years ago. On the other hand, banking institutions were first established during the early years of 1940’s which is over 70 years ago.
In spite of the fact that companies offering payday loans came to existence only 20 years ago, they have now managed to garner a huge market share. While payday loans might not be popular or available all over the world, in the US, it is a booming business. In fact, 35 states in the country have institutions which offer these loans. Of course, it is also possible to get these no hassle loans online. In the US, almost 30% of the country’s population makes use of these loans. Among them, 70% are known to use the loans on a regular basis.
While the payday loan industry may not be available in all countries, its global presence is a massive one. Almost half of all the countries in the world are known to have some form of payday loans available. This includes countries such as Canada, the United Kingdom Russia, Japan, Poland and Germany. In those countries, payday cash advances may be known by other names such as fast loans or instant loans. Nonetheless, the fact is that they are often highly welcomed by certain sections of the population.
How Payday Loans Work
Payday cash advances are offered by individuals or institutions. People who borrow money under this type of loans usually meet a few specific criteria which are given below.
- They need a loan of a small amount of money which is typically a few hundred dollars at most.
- They need a loan for a short period of time because they have a financial emergency that needs to be taken care of.
- These people require the loan so as to take care of a financial emergency which can result in severe problems if they are not resolved.
Payday loans are accompanied by high rates of interest. In some cases, it is quite possible for the APR to reach a four digit figure. That is massively more than even what credit cards charge. However, the aim of the loan is not to be a long-term financial solution. Instead, they are meant to be repaid within a couple of weeks at most.
The problem arises when the borrower fails to repay the money within the designated time period. In such cases, the interest accrued can increase exponentially within a short period of time. Within a few weeks, the interest will end up exceeding the borrowed amount. Unless paid back soon, the borrower may have to end up paying back thousands instead of the hundreds borrowed.
How to Get a Payday Loan
It is not at all difficult to get a loan under the payday cash advance scheme. You will simply have to fulfill a few criteria. These requirements are listed below.
- You will have to be a citizen of the country in which the lending institution is based.
- Your age must be at least 18 years or the minimum legal age in the region.
- You will need to be employed full-time. People will only part-time jobs are not considered to be eligible.
- You will have to provide your income information as these institutions do not give loans of an amount greater than that of your income.
- It is also essential that you have a current checking account at least.
- If you are planning to get these loans online, you will require a valid email address.
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