Speed E Loans (payday loans)
âDonât say Mayday! Say Payday!â This echoes a typical slogan of a payday lender. Payday lenders offer a quick cash alternative to long-term loans from traditional banks. They cater to people who need a few extra bucks to get to their next pay cheque and they take care of the cumbersome paperwork and approval process usually associated with getting a loan.
There are an ever increasing number of companies specializing in short term payday loans. With catchy names like âSpeed E Loansâ, âPayday in an Hourâ and âPayday from Heavenâ, these companies attract people who need a quick influx of cash to make it to their next ârealâ payday. You may have missed a bit of work and had a smaller pay cheque last week, or spent a little more than usual on a special occasion. Whatever the reason, a payday loan can be the solution to tide you over until you get your next cheque.
Payday lenders are certainly convenient, but consumers need to keep in mind a few key points to stay out of financial trouble.Â Speed E Loans offer less money on their loans because it is an unsecured loan. This is actually good news for the potential borrower because getting too much quick cash could mean difficulty paying it back. Â Interest rates on payday loans are higher, often much higher, than traditional banks. They can charge higher interest rates because short term loans for a person on bad credit are not available from the big banks.
Also, short term loans are just that: short term. Donât expect to be able to pay back your loan over six weeks or six months. You will typically have to pay back the loan, plus all service fees and interest, within a month or even a week. Â Finally most companies have a clause that, even if you come into some money and can pay back the loan sooner than originally agreed upon, you will still have to pay the full amount of interest as if you paid it back at 4:59 PM on the due date of the loan.
The good news is that supply and demand still applies to the payday lending arena. With ever more quick cash lenders opening their doors, there is more and more competition between them. If the demand from consumers stays constant, or rises less rapidly than the body of payday lenders, the advantage leans towards the potential borrower.
This is most clearly observed in interest rate wars that drive the interest rate on payday loans down to a more reasonable level. In addition, you can expect to get better terms on the duration of pay back. And, if you use the same payday lender more than once, brand loyalty comes into play. To keep you from trying a different lender on subsequent loans, your first choice might make concessions to keep you as a customer.
Payday lenders are neither inherently bad nor good. They offer a useful service for people who need quick cash and donât have the credit to get a credit card or a bank loan. The interest rate that they charge is consistent with the fact that its borrowers often canât secure a loan from a big bank with a lower interest rate. And they are short term, which means you wonât be tied up to a long-term loan.
All together, these features make a payday loan attractive. If you keep up with paying them back, your credit rating may even get back to a level where you can get bigger loans from bigger banks for the bigger purchases that you would like to make in the future.