In recent years, banks and other financial institution have made their borrowing policies more rigorous to such an extent that there are virtually no unsecured loans available at the moment. Consumers have sought other unsecured loans and therefore we now have record levels of credit card debt.
Despite the base rate remaining at an all time low of 5%, the credit card providers are slowly increasing interest rates. However, there is other option of unsecured credit, which has grown massively over the past five years and is becoming a popular solution for people around the country. And we talk about instant payday loan 1000 dollars.
Why are instant payday loans better?
According to the latest survey statistics, the number of people that apply for instant payday loans is eight times higher than five years ago. An average person has to take a loan twice a year or even more often. That is why you should know what payday loans are and how they work. Of course, $1000 payday loans should not be used as a solution to long-term debt.
While they often have a higher APR compared to more traditional loans, the repayment period is very short, so you will have no problem to make payments on time. In addition, they are easy to apply for and can sometimes be approved within minutes.
The payday loan for 1000 dollars is for people who need a small loan of $ 100 and $ 1500 and want the money immediately. Applications are made online mainly – although there are some loan stores, most transactions are done on the internet. In some cases, there is fast credit check performed, which can be a major attraction.
Usually, borrowers agree that the lender can take the money directly from their account when funds are available.
Interest rates for payday loans are high for two reasons. The first is that people who borrow money this way are high risk consumers for loan providers. The second reason to apply for instant payday loan $1000 dollars is that because the borrowed amount should be repaid over a short period of time (1-30 days), and the interest rate is calculated on an annual basis, it seems artificially high.
Basically, such an APR assumes that you would have paid the same amount of interest every day for a year, when in fact you should pay for a maximum of 30 days.