The Helpful Benefits of Payday Loans

Short term loans

Did you know that payday loans are small, short term loans that provide cash advances until your next paycheck arrives? These types of loans provide a modest amount of money, typically a few hundred dollars, that must be paid back within a time span of about two weeks. Since these types of installment loans are both helpful and convenient, they are beneficial in a variety of ways.

When obtaining a loan from online payday loan lenders, there are certain laws that lenders must follow. For example, a lender cannot legally attempt to collect a payday loan by using the criminal process against a borrower. In addition, many jurisdictions place limits on the amount of interest a lender can charge for a payday loan, which helps prevent usury. With these restrictions in place, you are able to safely borrow money knowing that you will not be taken advantage of or prosecuted by the lender.

Depending on the credit, personal, and employment information you provide to lenders, you will obtain a certain amount of money. In Illinois, for example, the maximum amount of money that can be borrowed is 1,000 dollars or 25% of your monthly gross income, whichever is less. When the money is borrowed, many lenders require a check that is post-dated to the day the money is due. If there is not enough money in your checking account on this specific date, the check will bounce. In order to avoid this, it is important to have enough money to pay back the lender by the day the money is due.

Since installment loans conveniently provide small amounts of money until your next paycheck arrives, they are beneficial in a variety of ways. Although you must pay back the money by a specific date that is determined by the lender, the lender cannot use the criminal process to collect your loan, nor can the lender charge overwhelmingly high interest rates. As a result, these types of installment loans can provide help when you need it most.

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