When you are low on your finances and sudden emergency crops up, an unsecured cash loan can become a great alternative for financial resource. This type of loan is also called payday loan or cash advance. It is a short term loan for the period up to four weeks, in that you can borrow small cash from as little as $100 to as much as $1500 or even more.
Unsecured cash loans do not require any form of collateral or home equity. They can be obtained if you have a full-time job with regular salary being deposited into your bank account. You simply have to do some research online and find the best lending company that can bridge your financial gap with a cash advance. However, you should know which factors to consider before making your decision. Given below are a few hints.
The most important factor to consider is the interest rate being charged by the lending company. Since payday loan is a short term loan, the interest rate is normally very high. The cash advance companies usually post their annual percent rates (APR) which are actually meant for the whole year but you can get an idea and compare various rates. You have to look for the least rate so that you have minimum interest liability.
Fees Charged By Lending Companies
You should also look out for the various fees charged by the lending companies offering savings day payday loans. These could be in the form of application or processing fee. You can even find some companies that do not charge any fee. It will be in your interest if you can find a lending company with the minimum amount or no fee at all.
You would also have to consider the convenience of making the application and the time that the company would take to make the savings account payday loan available to you. Some lenders might insist on getting documentary evidence of your employment and checking account details. However, there are lenders who only need the information and not the documents. Some lenders might also insist that you should have been in employment for a minimum period and they will check whether you have any outstanding checks or loans to be repaid.
It will be a good idea to check and compare all these factors of various online lenders and then make your decision regarding taking savings account payday loan. You want to enjoy the benefit of the loan while at the same time avoiding the risk of getting into a financial trouble.