When you require cash immediately, you have to consider payday loans as short-term financing. You will get these loans easily, and there is no requirement of credit check. This way, these loans are more accessible compared to personal loans or credit card cash advance. For availing a payday loan, you need to offer the payday lender your income proof and tell them the amount you want to borrow. They will provide you with a loan that you have to repay on its due date. The repayment time is based on when you receive the payment; it can be weekly, monthly, or biweekly.
Apart from employment proof and pay slip, you have to give them your bank statement. Once these loans are approved, the amount gets deposited into your bank account instantly. Depending on how these loans are processed, you may have to write a post-dated check including an additional processing fee. When the loan amount becomes due, you have to repay the loan amount plus the amount charged by the lender. If you are not able to repay the complete loan amount, you may request the lender to extend the loan repayment period. Default in payment of payday loans leads to similar consequences as default to making a credit card payment.
Payday loans can be dangerous at times
Payday loans are highly convenient, but it is available at a cost. Finance charges range between 15-30 percent of the total amount borrowed. Even if you take payday loans Minneapolis MN for just a few weeks, you may have to pay more interest compared to personal loan. These loans may result in problems because they are usually favored by those borrowers who have cash constraints or may not have financing options available to them.
Alternatives to payday loans
In many cases, people want to avoid payday loans Minneapolis MN. If you require financial help, you should investigate other sources. Some banks and credit unions have started to offer similar services but at reduced lower rates. The interest rates can be compared to credit card rates. You can also check whether you can get salary advance loans through credit unions or banks. Although it is better to avoid credit cards, they may be better than payday loans. Credit cards give you more time to repay the amount. Moreover, you get additional flexibility of breaking up the amount. If you pay the card within a few months, you may save the expenses of payday loans.