Seriously now, should you really even be asking that question? Everything in this life costs something – one way or another. Perhaps the better question would be whether or not the cost of a payday loan is worth the effort. In order to answer that question, let us take a look at the anatomy of a payday loan. What is a payday loan? How much does it cost?
A payday loan is a short term loan that has been designed to meet short term financial needs. It is meant for those people who have a regular source of income but suddenly find themselves facing an urgent need that is temporary. As such, a payday loan is best suited for a person who receives a salary on a regular basis. If you have a self-owned business and receive income regularly as well, then a payday loan will suit you fine also.
How do you apply for a payday loan? All you need is to meet the basic requirements – the main one being the point mentioned above. Other requirements that you have to meet include:
-be a citizen or resident of the USA
-be at least 18 years old
-have a current bank account.
Please be reminded that these are only general guidelines, however. Some payday loan providers might ask for other minimal documentation before they process your application.
Now let’s go to the heart of the matter – how much will a payday loan cost you? In truth, a payday loan is not for free. However, you have to realise that payday loan lenders do not charge interest in the same way that other conventional loan providers do. Interest rates, APRs, and the like do not apply to payday loans.
Instead, payday loan lenders charge a fixed fee for every certain amount that they lend to their clients. Again, this fixed fee will vary depending on the specific payday loan lender that you deal with. What can you expect with regard to the fee? The figures may play around from $10 to $30 for every $100 that you borrow. So, for example, if you want to borrow $300, you would have to pay anywhere from $30 to $90 in fees.
What do you think of those fees? Reasonable enough? Maybe a bit too high? Well, think about it this way. With a payday loan, you do not have to worry about the many other things that you have to worry about with conventional loans. For one, there is no need for a credit check. That in itself is worth the little extra that you might have to pay. In addition to this, you do not have to wait very long for the money to be in your hands. Again, whatever little extra that you have to pay is worth this. Last, but not the least, you do not have to exert much effort to avail of a payday loan as everything can be done online. I believe that payday loans are very much worth their weight in gold.