The shaky economy of the last few years has many people living hand to mouth. Savings accounts that once served as a buffer in case of emergencies, for many families, are now things of the past and people go from paycheck to paycheck, hoping that nothing crops up that will cost more than their budget will allow. But, what happens when that emergency does occur and you need a few hundred dollars and you need it now? Is there anywhere you can get a quick loan to make that emergency trip, if someone gets sick, or get that car fixed, so that you can continue to work?

For some people, there are options such as borrowing from their relatives or getting an advance from their employer. For other people however, these options are not available, forcing them to deal with some type of institution that gives loans. The problem is that most banks and credit unions will only give you a loan if you have good credit. They also take time, which means even if you have excellent credit you probably aren’t going to get a loan within 24 hours or less.

Cash advance and Payday loans

There is one type of loan you can get fast and with not many questions asked. These loans go by a variety of different names such as cash advance and payday to name just two. However, while the names may differ, the loans themselves are pretty much the same. They are short term loans, with fairly high interest, that are designed to help those who need a relatively small amount of money and need it quickly. There is no credit check but there are a few requirements.

You have to be 18 or older, have a full time job and a checking or savings account and be able to provide proof of these three things. You get the loan by writing a post dated check for the date the loan is due, plus an additional interest charge. In most cases, the interest is 15% to 17% of the amount borrowed. However, there are places where there have been no controls exerted for these types of loans, that do charge up to 50% of the amount you borrow.

How Long Is The Loan For?

In most cases the loan is only until your next payday, though some of these institutions set a 14 day minimum. They will in some cases, extend the loan for another interest fee. So, if you borrow $100.00 and pay it off on time then you pay $115.00 but, if you have the loan extended for an additional 2 weeks then you will pay $145.00. So, it is wise to pay this short term loan off, as quickly as possible, or it won’t take long before the interest is higher than the original amount you borrowed.

How Fast Can I Get The Loan

How fast you get the loan, often depends on where and how you apply. If you apply online, the loan is usually deposited into your account the next day. However, if you apply in person, many times you can have the money in your hand before you leave the building.

Are Payday Loans A Good Idea?

Deciding whether or not getting a payday loan is a good idea, depends more on who you are and your economic situation than anything else. If you have money in a savings account or access to the money you need from another source, that won’t cost the high interest, then a payday loan probably isn’t the best idea. However, if this is the only place you can acquire money in a hurry and you desperately need that money, then you will probably think that these loans are worth the high interest rate.

Keep in mind though, that many of these loan places will loan you as much as $2000.00 but you should never borrow more than you actually need and can pay back out of your paycheck, as having to carry over the loan multiple times will put you in an even riskier financial situation than you already are in. You also want to remember that borrowing against your paycheck will leave you less money for the next period and you will have to be sure your budget can take this loss of income, or find a way to cut back on expenses.

In the end, although payday loans are not the best way to borrow money, they can be a lifesaver for people who need small amounts of money and need it quickly.

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Pay day loans come in handy when people need money and need it fast. In most cases, you can get a payday loan within 24 hours of application, without a credit check. It doesn’t even matter if you have bad credit or no credit at all. All you usually need is to have a checking account and be able to show proof of employment. You can get small amounts of money in case of an emergency or to tide you over until payday. However, most people do not like the high interest these loans incur and often find themselves searching for a low interest payday loan.

A simple search of the Internet would suggest that low interest payday loans are everywhere and are even reasonably easy to get. However, such is not the case. Despite the numerous advertisements to the contrary, low interest payday loans are about as easy to come by as it is to own a unicorn. That’s right, they are both myths.

The fact is, if you stop and figure the annual percentage rate for most payday loans, it comes to about 73%. That being said, there are a few ways to reduce the actual interest on those payday loans even if you really can’t lower the percentages.

Interest Based On Time You Actually Have The Loan

While most payday loan places charge you a flat interest fee for the loan, there are some places that actually charge you a daily interest rate. If you need an emergency loan for only 3 or 4 days until your paycheck comes in, you could save interest by choosing this type of interest fee. Many of these companies charge you 2% interest per day. For example, if you borrow a $100.00 until your next payday and your payday is only 3 days away, you will end up paying $6.00 interest on that $100.00 loan.

On a set fee loan for the same 3 days you could end up paying between $15.00 and $30.00. Of course if you needed the loan for a full week the interest you save would be far less. However, even saving a couple of dollars may be worth finding a company that offers daily loan rates if you only need the loan for a few days.

State Laws And How They May Help You Get Lower Interest Loans

Different states have different laws that govern payday loans and lenders. Some states place strict limits on the amount of interest these institutions can charge for these short terms loans while other states allow the institutions to set their own rules. Because of the various state laws, payday loan companies who offer loans at set interests have varying charges. While some states charge a flat $15.00 for a $100.00 loan, others may charge $30.00, $40.00 or even $50.00 for the same size loan.

If you live in a state that charges a high set amount of interest on your loan you can search online and apply for a loan with a company in another state whose set interest is lower. While this still, can’t be considered a low interest loan in your situation it may well constitute one or at least a lowering of interest.

Keep in mind when shopping for payday loans, low interest or otherwise that such loans are illegal in the following states:

 Arizona
 Arkansas
 Connecticut
 Georgia
 Maine
 Maryland
 Massachusetts
 New Hampshire
 New Jersey
 New York
 North Carolina
 Ohio
 Pennsylvania
 Vermont
 West Virginia

If you live in one of these states where payday loans are illegal, you are either going to need to find other options for getting a short term loan or resort to applying for a payday loan over the Internet there are many companies who offer such loans online. You will need to abide by the laws of the state in which you secure the loan.

A Word Of Caution About Online Payday Loans

You should keep in mind that Online Payday loans are not the safest way to go. Although most states have some laws governing the amount of interest these companies can charge, many companies who give out payday loans online do so while ignoring the laws of their state or by having companies in various states where they can use the law as a shield. Many times, getting a loan from such companies results in huge interest rates, despite the promise of low interest loans.

Be sure, if you are dealing with an online company that you read all the fine print carefully and that the terms of the loan, any additional charges and the interest rates are clearly spelled out.

Other Options For Short Term Payday Loans

Before taking out a payday loan, consider other options that may result in lower interest fees or in some cases no fees at all. Many companies have funds which they use to give their employees cash advances on their checks, if and when they are needed and then deduct the amount of the advance from the check. In many cases you can get the advance immediately from a supervisor and there is no interest rate charged for these advances.

However, in many cases the company limits the amount of the advance to the actual amount of money you have earned in that pay period. For example if you earn $60.00 a day and have only worked two days before needing an advance the company will limit the advance to $120.00. That way, if you get an advance and then up and quit, the company is not out any money.

Some credit card companies also have a small emergency loans options as part of their perks. If this is the case with your credit card, using that loan will result in lower interest rates than most payday loan companies.

While there really is no such thing as a low interest payday loan, taking the time to see what these companies offer and to do a little research may well result in your paying a little less interest on that loan. However, your best bet is to explore other options as well in an effort to end up with the lowest possible interest on that short term loan.

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