Savings Account Payday Loan
Savings account payday loans are a potential solution for people who find themselves in need of a financial band-aid and do not have other options to fill that need. This is a better form of borrowing than a typical online cash advance because savings account payday loan amounts do not exceed the borrower's biweekly net pay. Therefore, borrowers should be able to repay the money in a timely fashion and avoid exorbitant interest rates and fees.
Many people who apply for a savings account payday loan do so because their credit score does not let them apply for conventional advance. They may have tried to apply for credit cards or other traditional bank loans but have been denied. Most companies who offer these types of funding do not require a credit check from their applicants. Borrowers will, however, need to show proof of their employment status and also provide documentation showing their direct deposit checking account. The application procedure for a savings account payday loan also requires the borrower's social security number and the bank routing number, which is found on a personalized check.
One of the advantages of a savings account payday loan is the rapid turnaround time between application and receiving the funds. Once the contract is approved, the monies are usually electronically transferred to the borrower's account within one business day. Another advantage, from a wise fiscal point of view, is that the amount that can be borrowed is limited to what the borrower can repay. Limits are often set around $500. This means that the risk is small for both the lender and the borrower, unlike what happens when an applicant is given a credit card limit with a $10,000 line of credit.
On the other hand, the fees for savings account payday loans, as with most cash advance transactions, are high. Some companies set their fees depending on the amount borrowed; others charge a fixed "per loan" fee. Either way, the borrower is paying a great deal for the privilege of borrowing. A wise applicant will read the fine print and do the math before agreeing to the terms. Once the terms are summed up, the borrower may find it wiser to pursue other less costly means of borrowing.
Borrowers in some communities can find lenders who offer savings account payday loans at brick-and-mortar storefronts. Some banks are even getting into the business. Of course, as with most any other financial transaction in these highly technological times, potential borrowers can find many savings account payday loans through the Internet. But if a borrower finds himself in a financial crisis, he should first seek God's direction in these financial dealings. The psalmist writes, "I [God] will instruct thee and teach thee in the way which thou shalt go: I will guide thee with mine eye" (Psalm 32:8). As believers, He is our first source for financial problems.