Payday loans are tiny short termed loans which are secured against the pay checks of the borrowers. The loans are also referred as payday advance and cash advance too. Lenders normally have the look on the employment and the payroll records of the applicants before issuing the loans. Job status is checked in order to ensure the repayments ability of lenders.
To secured payday loans, a person can visit any outlet near houses or can apply online too. The loans are easily secured with the agreement of paying it back with the principle and interest on the next pay day. The person usually writes post dated check to cover the amount of outstanding. When the pay check arrives, lenders withdraw the money directly from the accounts.
If the amount in the accounts would not be sufficient to pay the loans back, lenders will charge extra cost for bounce checks. The interest rates on the loan will also increase in case on not repaying loans on stipulated date.
The application process for loans can be completed simply online. Borrowers have to supply data about their names, address, phone numbers, social security number, email, job and bank account information. Once the loans get approved, lenders deposited the entire cash into the accounts of the borrowers. There are various legislations on payday loans in different regions and state. The laws have out some ceilings and limitations to the annual percentage rate to prevent usury and excessive rates. Make sure that your payday lender is not violating the laws and norms implied by the state laws.