What is a 24 Hour Payday Loan?
Now-a-days most people are familiar with the concept of payday loan. 24 hour payday loan is a special case of payday loan wherein loan gets disbursed into your bank account within 24 hours of application. Since, this loan is directly deposited in your account, it is also called direct deposit payday loan.
In certain other cases, the term 24 hour payday loan refers to the fact that many loan companies are providing loan services round the clock i.e. across 24 hours, one can apply for a loan at any time. As you might have rightly guessed by now, this service is facilitated by the ubiquitous internet.
For the uninitiated, I would like to mention that payday loan is a short-term loan that is provided as a salary ‘advance’ i.e. the borrower is expected to return back the loan to the lender on receiving his or her next salary.
How Can One Avail 24 Hour Payday Loan?
Like any other thing, in today’s ‘connected’ world, availing a 24 hour payday loan is quite easy. With most loan companies providing their services online, one just needs to log on to web and apply for the loan online. As mentioned before, since payday loan is loan against one’s upcoming salary, along with the loan application form, you will need to furnish details of your job and salary. Most loan companies may not use this information at the time of processing your loan. However, if you default on loan and do not renew your loan, then loan companies may (and quite rightly so) use your job information to take steps to recover their money. But yes, if you are a law abiding citizen then you need not get bothered with this.
The Good 24 Hour Payday Loan
One of the most remarkable features of 24 hour payday loan is the fact that there is no credit check done of the loan applicant by the loan companies. It means is that even if you do not have a very credible credit history, you can still avail the facility of 24 hour payday loan to fulfill your unforeseen and unexpected financial needs.
The Cautious 24 Hour Payday Loan
It may be worthwhile to note that 24 hour payday loans are provided usually for very small amounts, say $500. This is quite understandable, since, as mentioned above, these loans are facilitated without a credit check.
It may also be noted that since, these are insecure loans; such loans come with reasonably high rate of interest. As the loan amount, itself is small and that too for small duration of time (15 to 30 days), high rate of interest is not at all that evident. For example, an interest amount of $40 over a loan amount of $500 for a period of 30 days is actually at a rate of interest of 96%. However, it is also to be noted that even at this high rate of interest, 24 hour payday loan are cheaper than many other loans. Therefore, these loans are also known as cheap payday loan.