National Payday - cash loans and advances on your paycheck

As a family caregiver I am always interested in information on how to get the money I need when I need it rather than having to wait for it to get here. When I saw things on those Advance Till Payday loan deals recently I did some looking into them for another of my blogs. Of course the first place I looked was the Federal Deposit Insurance Corporation (FDIC) website, the guys that preserve and promote public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions.

The FDIC explains how a payday loan works:
"In return for the small loan - usually less than $500 (See Chart 1) - the borrower provides the lender with a check or debit authorization for the amount of the loan plus the finance charge. The lender agrees to defer presentment of the check until the customer's next payday. At the next payday, the customer may redeem the check by paying the loan amount plus the finance charge, or the lender may cash the check. In some cases, the borrower may extend the loan by paying only the finance charge and writing a new check."

The short term payday loans are made in small-dollar amounts, usually less than $500, that are unsecured. A cash advance against a regular paycheck that the borrower simply promises to pay the lender back, plus finance charges, from their next paycheck.

In 2001 the average loan amount was between $201 and $300. The typical borrower is someone that has cash flow difficulties and few alternatives. They are also often repeat customers. According to the FDIC website, "the prevailing underwriting criteria of most payday lenders require that consumers need proof only of a documented regular income stream, a personal checking account, and valid personal identification to receive a payday loan." This makes it a very easy loan to get for short term emergency needs and therefore very appealing, despite the cost, to many people with few alternative borrowing options.

If this sounds like something that you might want to look into more, you can do so online. National Payday provides payday loans and cash advances both quickly and securely at competitive rates.