Ever since the economic crisis, a lot of American families are taking all possible measures to reduce their monthly spending to cope with the sky rocketing prices of basic utilities, transportation and other services. More and more individuals or family bread winners have reduced or have fallen short of cash and considered taking loans from institutions to cope with the family’s needs like monthly utility bills or unexpected utility billings, car repairs, medical bills and lastly to pay-off bounced check fees & overdraft charges including payments for credit cards.
One of the most popular loan options that Americans usually take is the payday cash advance loan. Qualifying for a payday cash advance loan is quite easy. A borrower must present to the lending institution of his choice a proof of personal identification, a personal checking account number, justify that he is employed or receiving a regular income from a legitimate work or receiving government benefits like social Security or disability payments to qualify for a loan. Whether a borrower applies online or over the phone, loan providers take responsibility protecting all information given online or through the phone.
Once a borrowers online application is approved, the money may immediately be accessed through his bank account. One added feature of this loan program is its confidentiality. All credit information supplied online in the borrowers application is treated confidentially especially the borrowers bank account and payment information.
As an added convenience, a borrower may request from the loan provider flexible repayment options that can be pre-arranged with the loan provider prior to the release or confirmation of the loan. Since payday loans are offered online, its services may be accessed 24-hours a day, 7 days a week even during holidays.
Short term loans on the other hand are usually offered by banking institutions. Unlike payday cash advance loans, short term loans from banks require borrowers to post collateral as loan guarantee.
The cost or value of the collateral must be equal to or more than the value of the amount loaned by the bank. The application process on the other hand is a bit longer in comparison to payday loan programs since all loans made through banks follow a certain banking standard.
Banks may also assess the borrowers credit history, credit score and pay slips for the last 6 months. When short term loans are made through bank, a potential borrower may access of the loan only during weekdays from 9:00 A.M. to 5:00 P.M.
Whichever loan option a borrower wishes to use, it is important that the borrower is well informed about the loan he or she will be taking advantage of. Legitimate loan providers usually provide borrowers with toll free numbers to speak to a customer service representative who can give all the necessary information needed.