What Are Direct Lender Payday Loans?
With today’s economy, many people are finding themselves unemployed or not being able to meet their day-to-day financial obligations. In recent years, the banking industry has developed many new and exciting loan packages that apply to people in these situations. Whether they be payday loans, no fax advances, online credit lines, or any of the other new financial instruments in the market, these may be attractive to you if you find yourself short of cash.
A few things to keep in mind is that these types of loans usually carry a little higher interest rate than your typical loan which you may obtain from your local bank or credit union. This is typical because people applying for these types of loans usually do not have collateral or sufficient funds to be able to pay their bills any other way.
Basically, lenders will have you postdate a check to them for the amount of your employment check that you’ll receive in approximately 30 days. The lender will make sure that you have that amount plus interest in your checking account before approving your loan package.
The term payday is used basically because you were signing over the same amount that your paycheck will be and on that day you receive the money in your paycheck the lender will take it from your checking account.
You have to stop and think for a moment that these types of financial instruments are safe to take out because in most towns and cities in the United States there are payday loan lenders in most strip malls and even in old converted gas stations. A few years ago there were several state and federal investigations into these types of lending institutions but they are now regulated and are very safe.
Applying for this type of loan is the only option for many people with today’s downward economy. If you find yourself in financial troubles with no other means of paying your bills or short-term financial obligations, this type of monetary note maybe your saving grace. Typically, lending institutions only require that borrowers be 18 years of age or older, be currently employed in a position which they have held for six months or more, and have an open checking account with a balance exceeding what the loan amount is for.
If this sounds like the type of loan that may be attractive to you when you’re in need of a short-term quick infusion of cash to pay your bills it may behoove you to take the time to check it out.