Paycheck Loan

During these difficult economic times, many families are experiencing a cash shortfall that can only be met with a short term loan. Paycheck loan is now one of the fastest growing segments of the financial services business. Although very convenient and easy to get payday cash advances, the cost may be an important consideration.

First, let's see what you need to get a payday loan or what is commonly called a "no fax loan" or "faxless loan". The access that everyone now has to the internet makes it possible to not only do your banking, shopping, education and business online, but you can now easily get a payday loan direct from a faceless entity on your computer screen. Without the Internet your chances of getting an overnight loan is greatly diminished. So is the paycheck loan worth the cost of internet access if you don't own a computer? Possibly, if the web is not accessible to you, then you can always use the local library or an internet café.

Paycheck Loans

You also need a checking account to get a payday loan. The cost of not having a checking account is more of inconvenience than almost anything else. For you to pay your bills such as utilities, phone, car payments without a checking account becomes burdensome. You either need to trudge on down to the electric company or cable company and pay them in cash or use a credit card - which is impossible to pay in cash. Most checking accounts are worth the low and sometimes free cost to compensate for the inconvenience of not having one.

The most important costs to consider when applying for a paycheck loan is the fees involved with the transaction. These are considered short term loans and the interest is generally higher than on long-term loans. But don't let that scare you because you will only need the money for a short time. If you bounce a check at the bank because your paycheck loan was not deposited on time, it will cost you anywhere from $15 to as much as $35. If you bounce a few checks, which is more likely to happen, then it will cost a lot more. For example, you are late with a deposit and you paid your electric, cable, car payment, phone bill and insurance; they all are returned with NSF charges of $28 each. That is 5 charges at $28 or $140. If you made arrangements to get a cash loan quick through a paycheck loan company, it would cost you considerably less.

Is it worth the cost? That of course is up to you to decide. But this is only one of the factors to consider when using a paycheck loan to bridge the gap of short term cash flow.

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