Payday Loans: The Way To Get A Cash Advance

You hear and see advertising for payday loans everywhere. These advertisements are on the television, internet and even on the radio. Loans such as these come with very high fees and interest rates.

There is an abundance of companies involved in writing short-term loans with a high interest rate. Although they go by different names, they are the same type of loan. Payday loans, cash advance loans, and deferred deposit check loans all fall into this category.

You will generally need to give the company a check for the amount of the loan plus any fees they are charging. You then receive the money of the actual loan minus the fees. The fees are usually based on a percent of the amount loaned. Some companies charge a flat amount according to the amount borrowed. If you should need more, time to pay and want to continue the loan for a longer amount of time, you will have to pay these fees again for as long as you need to extend it.

According to law under the Truth in Lending Act, the loan companies must provide you with a written statement of what the annual percentage rate is and how much the total finance charge will be on loans. This is required to be a dollar amount for the finance charge.

You must write a personal check to get cash advance loans or payday loans. You may have to write a check for $115 if you need to borrow $100 for two weeks. They will then hold the check until a specified time and at that point, you will have to pick up the check by paying the $115 or keep the loan for another two weeks. If you do not do this, they will cash or deposit the check in which case you could end up with overdraft fees from your bank. If you keep the loan, you will have to pay another charge of $15 and 391 annual percentage rate. As you can see this can get quite expensive. You could easily end up paying $60 out in fees to borrow $100 in a period of four weeks.