5 Star Loans

Payday loans are a small-dollar, short-term loan that a borrower promises to repay on their next paycheck or by depositing the funds. There are of course different types of payday loans and different steps to take when deciding to obtain this type of loan. Typically these specific loans are for $100 to $500. Many people are familiar with the term cash advance, which is another name for payday loan. The first step borrowers take is to go to a lending store and secure a small-cash loan. The interest rate for payday loans is very high, ranging from ten to thirty percent of the amount, for a two-week period of time. The borrower writes the lender a postdated check in the amount of the loan and fees. If the borrower does not repay the loan on the payoff date the lender has the option to process the check. A bounced check fee will be added to the loan and fee amounts if funds are not covered at this time. Online payday loans work as follows, borrowers fill out an application and fax over all the information requested such as, a copy of a check, social security number, etc and then the money is direct deposited. The payback will be electronically withdrawn on the borrowers next payday.