Short Term Payday Loans - Get Quick Cash and Avoid Late Fees

Short term payday loans are often the best method to get quick cash and avoid late fees. While short term payday loans typically carry a high interest rate with them they are typically less expensive than incurring fees on other obligations such as a car payment, credit card fees, rent payments, or bounced checks. This article will attempt to enlighten individuals on why payday loans are often the most financially wise decision to solve short term cash flow problems.

Short term payday loans do carry high interest rates with them and should not be taken out as a common practice. However if you need to get quick cash and believe you can pay back the online cash advance in a relatively short period of time then getting a payday loan online is the best option when compared to the costly fees that you could incur otherwise. Here are just some of the fees that are commonly charged to consumers who are unable to pay.

o The average credit-card late fee is over $30.

o Overdrawing your checking account can cost you $40-$60 for each check since both the bank

and the merchants are likely to charge bad-check fees. Plus you still have to pay the same amount on the checks.

o Some banks provide bounced-check protection. However, a fee is charged for every check, ATM withdrawal and debit-card purchase once the account is overdrawn. The average fee is $29 and additional daily fees are usually added if the overdraft has not been remedied within five days. A handful of small purchases can cost hundreds in fees even though the total amount overdrawn is less than $100.

o A $100 short-term loan typically will cost $15 for 2 weeks. In addition to the fees and penalties, late or skipped payments can hurt your FICO score. One impact of a lower FICO score can be hundreds or thousands of dollars in additional interest payments on just one future loan.

A short term payday loan can be a better option than overdraft fees, reconnect fees, late payment fees or a damaged credit rating when the loan is repaid promptly. However, these loans are not suited for longer repayment periods. Recent studies have shown that payday loans are transparent, but expensive, while banks offer hidden fees.

While many forms of credit have a lower APR than a short-term payday loan, sometimes the costs of borrowing can be deceptive. Credit card companies and banks charge more in penalties than the interest you will normally incur on your short term payday loan.

While there are many methods of getting a payday loan I would strongly encourage you to apply for a payday loan online as opposed to walking in your local retail outlet. Online payday loans have consistently provided consumers a better rate. I would recommend not going directly to an online payday loan lender for your short term loan but rather going to a website who deals with several online lenders and make them compete over your business. These sites are usually free to the consumer and are much more convenient as you only have to fill out one online application.