Payday loans have always been among one of the most prominent subjects in the context of loans. Many wonder what are the differences between this loan and the other instant quick cash loans. When talking about the best bad credit loans or the instant approval loans, it is Payday loans that come to our mind right away.
However, one must be pretty aware of the factors that make Payday loans quite a standout when compared with the other loans on the Internet.
Go through the following steps and that will give you a glance at the criteria.
A shorter term of payment:
As it is already said, Payday loans are designed to be short-term solutions during the financial crisis. Payday loans are quoted maximum to the duration of six months and the further tenure terms vary with state.
Rates and fees:
The flexibility and accessibility of the payday loan won’t come in cheap. Due to their inevitable benefits and steady helpline strategies, there is a greater APRs than other forms of credit. Many states keep a check on the APRs and there are a few that won’t let the charges soar up. On the whole, be sure to take into account the full cost before you apply.
The amount you can borrow can be as minimum as $50 and can soar up to $1000. This phenomena also depends on the state you live in.
Despite being one of the most common means of the online loans, a Payday loan is something more significant and a standout when compared with the other loans like a line of credit, cash advances and title loans. Payday loans are the best short-term loans for their flexible accessibility and payment options.
What if you won’t pay him back?
There is a common notion that the lenders might file a criminal case against you for not paying the money back. Well, here we did some basic research and found that the lenders technically cannot mess with you. Back then in 2012, Texas passed a law that prohibits the lenders from filing criminal complaints against borrowers who can’t pay back their loan.
Which means it is now against the federal law. Unfortunately, this hasn’t stopped some payday lenders from filing criminal complaints against borrowers anyway in the past. If your lender files a criminal complaint against you, you might want to get the legal counsel to help you handle the case.
On the whole, your lender can file a civil lawsuit against you if you’re unable to pay back my loan, however. If you don’t pay it back after getting a court order, you could end up in jail. We suggest you avoid such situations very priorly and all you should do is find the apt lenders in the first place. Here at loanshop, we did that for you, enlisted few generic lenders on whom you can rely on.