The cash advances are issued much faster than the classic banking products. In terms of the speed of the procedure, companies compete with each other – some promise to issue an urgent loan on the same day, others – within 1-2 hours after filing an application or even faster. In this case, the client does not even need to wait for payday loans near me.
Why use payday loans near me
In case of cash advances, it is quite logical that in such a short time the company does not have time to thoroughly examine a potential borrower, check the information provided to them and verify its infallibility and reliability. And the package of documents that are required when you make a quick loan is not scary with its impressiveness.
Users can expect to receive payday loans near me with minimum personal information – even with a damaged credit history or a lot of unliquidated obligations in other banks. The only security for such a loan may be insurance, but often it is not necessary at all. However, the simplicity of the loan processing procedure and the high rate of its issuance negatively affect its other parameters and properties.
The large overpayment and the high total cost of a quick loan consist of:
- Interest rate exceeding the rate on a standard consumer loan by 10-20 or even 30 percentage
- A one-time fee for issuing borrowed funds, or, alternatively, for considering the application
- Commission for cash withdrawal at the bank’s cash desk or when cash is withdrawn from the card through an ATM, the amount of which can reach 1-5% of the amount
- Fees for registration of the insurance – about 0.5-1.5% of the loan amount
- Fees for accepting payments to repay debt when transferring funds from a bank account, depositing cash through a cash desk or ATM – about 1-3% of the payment amount
- The monthly fee for servicing the loan, which can reach 1-2% of its amount.