What Is a Payday Loan Store ?

" A Payday Loan Store, either online or brick and mortar can solve quick cash shortages - many times, the trade off between insufficient-fund fees or credit card late-fees makes the payday loan store the least costly alternative... " - Leslie Collins

Do you need cash NOW?

Nothing's worse than an unexpected car repair... OUCH!! especially when you have to get to work or haul your kids around and your cash flow is next to NOTHING.

How about this cash drainer. A critical medical expense comes up that requires expensive prescriptions PLUS at the same time, you are required to pay up-front fees at a critical care or emergency room.

Life can be BRUTAL when it comes to cash expenses that are NOT planned, however most of us experience cash shortages and need solutions - FAST.

A payday loan store, either online or brick and mortar, is a reasonable solution in cases when you have little cash or unplanned cash expenses that are deemed CRITICAL.

Funds from these loans, which can usually be deposited into your acount within 24 hours, are a viable solution for responsible consumers needing a one-time solution to a cash crisis.

Requirements at an online payday loan store are typically not too difficult for most - the common requirements are proof of employment and an established bak account, either checking or savings. Having these two things will usually secure you funds at any payday loan store.

A payday loan is basically a loan against your salary - you pay a fee for borrowing this short term money.

Reasons to use a Payday Loan Store

Fast cash payday loans are typically used for a few common reasons - the root cause being "your " cash crisis and the need to payoff bills or expenses that can't wait until payday. As you probably guessed, this type of loan is best used to sidestep an URGENT personal financial situation.

Late Fees - Many times a payday loan is the cheaper alternative to paying large fees associated with late payments on credit cards, bounced check fees, overdraft, and other insufficient fund fees. Usually the cost charged by a payday loan store is about $15 to $20 per $100 borrowed. Compare this to the typical fee of $35 of even bouncing a $20 check at your bank.

Car Repair - These are always unplanned and a big drain on cash. A several hundred dollar repair may be unavoidable just to maintain a normal life - going to work, picking up kids, shopping etc...

Child Support - A late child support payment can be a real mess. A payday loan store can usually cover the cost of a child support check enabling you to keep your obigations intact.

Health Care and Medical - These are always unavoidable - prescriptions can be costly and up-front emergency fees can easily cost $75 -$100 per visit depending on insurance.

Seasonal - Many who are intent on gift buyng but somehow can't manage or don't want to increase credit card debt may use the payday loan store to buy gifts.

You're Not Alone

If you are considering requesting funds from a Payday loan store, you are NOT ALONE.

The Washington Payday Lending Industry showed a large increase in payday loan store usage between 2000- 2006 In 2006 alone :

Number of Fast Cash Loans: 3,297,012
Average Fast Cash Loan Amount :$ 375.64
Number of Fast Cash Loans has Increased about 113% between 2000-2006
Fast Cash Loan is a $1.8 Billion dollar business - Annually
The typical income range for borrowers using a payday loan store is between $25,000 to $50,000 annually.
The average age group of the typical payday loan store borrower is less than 45.
66% of the borrowers needing payday type loans are doing so to cover UNEXPECTED EXPENSES.

Quick cash loans are becoming the overwhelming popular choice for solving short term cash flow problems - Learn the basic guidelines for recieving funds from a payday loan store

Payday Loan Store - Basic Guidelines

In General, a payday loan store will not be as strict as a regular secured loan, usually employment, and bank account is all that is needed... by: Leslie Collins

So how do you begin the process of receiving funds from a fast cash loan store? What are the requirements and steps you need to take ?p>

If you are working and have a bank account, getting a quick cash loan is not too difficult. The rules are quite similar for borrowers needing an advance payday loan from company to company. The rules go something like this:

To Borrow funds, you need to be at least 18 and a US citizen
You need to earn at least $800-$1000 per month - verifiable income
You'll need a bank account- either a checking or savings and have a direct deposit feature.
You also must be current with all your past quick cash loan debts - you mustn't owe.
ID verification is critical - drivers license, passport or other Photo State ID will do.
On a Payday loan, usually you will only be able to borrow 25% of your gross monthly income or $1500; which ever is less.

Payday Loan Store Process

"The step by step process to fill out an online payday loan application is incredibly brief - usually it takes about 90 seconds to submit.. - Leslie Collins

You'll go through some variation of this process below:

To prove income you'll need a check stub This is if you are applying in person.Try to bring your latest one. When you apply online you may need to fax If you are applying online you may have to fax income verification. just copy it face down on a printer and your ready to fax.
You'll also need a bank statement - a canceled check will prove this. You also need to have DIRECT DEPOSIT active on your account in order to transfer monies. Again, if you are applying online you may need to fax this information.
Have Your Id Ready - The payday loan store will want to see your ID (drivers license, military ID or state issued ID), so of course, have that ready.
You needn't worry about bad credit - it's not an issue with the majority of payday loan stores. You can receive fast cash funds with very poor credit or even if you have filed bankruptcy.
Have a Postdated Check - If you are applying in person, You may need to write a postdated check for the amount you borrowed plus the fee attached to the loan.You receive the funds in exchange for the postdated check.
Monies are usually transfered into your account in 24 hours - In some situations it may take longer - 3-5 days - it all depends on the company you end up working with.

How Much does the Payday loanstore charge?

As you can probably guess, the cost of Fast cash type loans is high.

Expect to pay-back the principal PLUS fees anywhere from $20 to $30 per $100 borrowed.

When pressed to actually apply for funds try to find a fast cash loan company that charges no more $20 per $100 borrowed.

Rather than expressing the payday loan fee in terms of interest rates, they are more easily understood as cost per $100. The cost expressed as an APR can be ridiculously high - as much as 1800% ! in some cases.

Provided below is a chart that displays typical fees charged by a payday loan stotre expressed as APR ( over 14 days)

$100 payday advance with $20 fee = 521% APR
$100 payday advance with $30 fee= 800% APR
$100 payday advance with $50 fee = 1,304% APR
$100 payday advance with $60 fee = 1,564% APR

It's clear to see that trying to undestand the fee associated with a loan from a payday loan store is crazy! It's much easier to understand the cost as a fee per $100 borrowed.

A 36% cap on payday loans is trying to be put into effect by an organization called "The Center for Responsible Lending". This is because statistics prove that, used carelessly, fast cash payday loans may create an endless cycle of debt for those who can't or don't really understand how expensive they can be.

Being reponsible regarding your own finacial situation is the key when considering payday loan funds. Make sure you are able to pay back the loan on time to avoid snowballing late fees. Make sure it's truly a LAST RESORT or you could end up in BIG MONEY TROUBLE.