Payday Loans or Cash Advances - Know More about Them before Making Your Decision |
Posted: March 12, 2015 |
There are different types of unsecured loans online. There are different types of terms used to represent such loans. Online personal loans are issued to the borrowers, who want to use loans for personal purposes. Payday loan is another type of personal loan issued by the lenders. You could borrow from $100 - $1500 under this type of loan. However, you have to pay them back along with the interest on next payday. You could also buy personal loans for large amounts and extend the payment period over several months. Read on further to know more about these types of loans. What all you need for the payday loans? In order to qualify for the payday loans you do not need credit check approval or the collateral. These loans are provided depending on your income. You have to pay them back on a pre specified date. Sometimes lenders provide you the option to pay back cash loans NZ in multiple payments. What is the difference between offline and online payday loans? If you want an online payday loan, you must have a bank account. Under such loans, whole of the borrowed amount is transferred directly in your account. The lender will deduct the repayment cost including interest rate and due date. This is a little different from offline payday loans. In offline loans, you have to provide post dated check, which could be deposited on due date. The online companies ask you to deposit at least $1000 in your bank account to avail online loans. What are cash advances? Cash advances are commonly issued to the borrowers. In order to qualify for this loan you need a credit card or any other open line of credit. This type of loan is much similar to any other purchase made by the credit card. However, instead of purchasing the products, clothes or footwear you are buying money. You have to pay higher rate of interest for these loans. Useful facts about the cash advances This cash repayment is not at all included in your credit balance. Until you pay the remaining balance of your account, you are not allowed to pay the cash advance balance. Hence, it is important to manage these loans appropriately else, you will end up paying higher rates of interest. Considering the APR of payday loans, it may be more than 300% for these loans. On the other hand, APR for cash advances lie between 20- 30%. However, the rate of interest is represented in the form of flat rate. In general, whatever type of unsecured loan you borrow be it payday advances, personal or payday loans you have to pay high interest rates as compared to secured loans. There is a simple reason behind it. The lender or the banks are at high risk of not being repaid on time. Before applying for these online loans, you must search for some of the topmost online companies that ask for reasonable interest rates and flexible due date.
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