4 Jun, 2020

How Payday Loan Interest Rates Are Calculated

Financial difficulties are a worry for everyone from time to time. Unforeseen expenses often crop up and we are not sure where we will find the money from to pay them. A short-term solution during economic slumps and tough financial times is a payday loan.

A very important note for all reading this text is that in the United States, it is a requirement of federal law that the fees for all types of financial transactions are shown to the customer. The fees associated with any transaction should be shown in terms of the APR (annual percentage rate). There is one downfall here however. Using this formula automatically assumes that the loan in question will last for a minimum period of 1 year. However, when talking about cash advance loans, this is typically not the case. In fact, a more realistic time period for a payday loan is somewhere between seven and thirty days.

So, exactly what does this mean when looking at the way the APR is shown for a short term payday loan? The interest rates on these loans are often triple-digit. In fact, they can be even more; but the total amount of interest might also be as little as 10 dollars. It all depends on the amount you borrow and the period over which you borrow the sum of money.

When you choose Inchain as your payday loan lender, we will clearly show you the interest rates of your loan. We will do this before you give us any of your personal details.

How to Find the Best Rate on Payday Loan Lending?

First and foremost, remember that payday loans are not designed for anything more than the short term. They are not the solution to your long-term financial worries. When selecting a loan amount, always work out of you can realistically pay back the whole amount on the date it is due. For this to work, only select the minimum amount that will cover your immediate needs, and schedule the repayment date for when you will next receive your pay check. Once you have worked out what you actually need to borrow, not what you would like to borrow, you should go on to compare lenders. This way you can see which lender works best for you, as well as looking at the different interest rates that the lenders charge. You may also like to consider the following:

  • How quick and easy is the application process?
  • Once my loan is approved, how long will I wait for it to be transferred into my account?
  • Can I really trust the lender?

Cautions of Loan Interest Rates on Payday Loans

A short term cash injection can help you in temporary situations such as a reduction in your working hours. This type of cutback is quite common, and at times like these, you will need to boost your family, albeit temporarily.

It is unfortunate to say however that a lot of customers who use payday loans find themselves trapped in a cycle of debt. Inability to pay back the debt on the day it is due sees the fees rollover. After only a couple of rollovers, the fees are now more than the original loan. And you still have the principal to pay.

The good news we have for you here at Inchain is that we don’t believe in rollovers. This is because we don’t wish it upon our customers to end up in a cycle of debt. If you take out a loan with us and struggle to meet the payments, a payment plan can be worked out for you. To do this, all you need to do is call us and talk to one of our customer representatives.

Why We Are Different From Other Payday Loan Lenders?

Payday Loans from Inchain are not the same as those that you can take out using other lender. For this reason we continuously mention Inchain for short term borrowing. You only have to look at the APR of Inchain’s payday loans to notice the difference. What’s more, all fees are clearly shown up front, before you even submit your details.

Inchain is also licensed in all states where we operate. We abide by federal and state laws that are in place to protect consumers. It is also not necessary to have a good credit score to gain access to Inchain payday loans. Other benefits include:

  • Instant approval. You won’t wait for a decision on your application to be made
  • Free educational and financial products
  • A swift and hassle-free application process that can take as little as 5 minutes to complete

Inchain is the place to find payday loans that are safe. If you are still not convinced, check out what current and previous Inchain customers are saying about their experiences.

Qualification Process

What conditions need to be met when applying with Inchain for a payday loan? As we are a licensed lender, we meet all Federal and state laws prior to the lending of monies. It is these laws that protect you, the customer and borrower.

The Inchain application is very easy and straightforward and takes less than five minutes to complete. Before you start, make sure you meet the basic requirements:

  • You are 18 years or older
  • Your habitual residence must be in one of the states we operate in
  • You are not currently and Active Duty Military member, or indeed the dependent of one
  • You must have a source of income that is recurring. This could be government assistance, your regular paycheck, or your pension
  • You must have a checking account that is active, registered to your name, and that will allow for the electronic transfer of funds.
  • You must have a phone number, email, address, and home address that you can confirm with us

Approval does not rely on credit score. All these preconditions apply to all our applicants.

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