Usually when you talk about payday loans you are talking about high fees and interest rates. They will give unsecured loans to people with bad credit with the promise of payment with your next paycheck. Trying to find a low fee payday loan is hard but it does exist. There are companies around that will give out a low fee payday loan. Instead of charging $25 for every $100 dollars borrowed they may only charge $10 or $15 for every $100 that is borrowed.
A low fee payday loan usually exists to entice new customers into an existing business. With so many payday loan companies, some companies have lowered their fee to draw in more customers and get them away from the competition.
How Does a Low Fee Payday Loan Work?
A low fee payday loan operates the same as a regular payday loan. You will fill out some paperwork in order to get the loan. Sometimes you have to fax proof of your pay to the company that you are doing business with. You do this by faxing a paystub to them. After you sign the papers they will direct deposit the amount of the loan into your bank account. It will usually be the next day after you sign the papers. Sometimes it will be the same day. When it comes time to pay them they will take the money directly out of your bank account. They use electronic funds transfer to do this. You should always see to it that you pay your loan off with your very next paycheck even with a low fee payday loan. Most likely there will be fees added on each week that they have to take a payment. With some payday loan companies you can get it set up to have a monthly payment made. Your payment amount will be more than the weekly amount. The longer it takes you to pay it back the more you will pay in interest.
Who Can Get a Low Fee Payday Loan?
There are certain things that you must have in order to get a payday loan. You must have these requirements whether it is a low fee or a regular payday loan.
- You must be at least 18 years of age at a minimum. Different states have different minimum age requirements.
- You must have an active bank account. It must be able to accept direct deposit and it must be open for at least 90 days.
- You must have some form of employment and you must be working at it for at least a month. Some companies will make you work for six months.
If you are applying in the United States, you must be a citizen of the United States or a permanent resident.
Where to Shop for a Low Fee Payday Loan
The internet is going to be your best place to find a low fee payday loan. There are so many payday loan companies on the internet you are sure to find a low fee one if you shop around. It is important to be smart when looking and to make sure you understand what you are signing. Read the document carefully and make certain you understand everything. If you have questions, ask. Don’t sign anything without knowing what you are getting into.