What Is A Signature Overnight Loan?

by Mack Bartlett

Payday loans go by many names, including overnight loans, cash advance loans, and many others. These payday loan companies advertise the ease and simplicity of borrowing money, but the truth is that you get sink into deep financial trouble with a payday loan.

These quick loan companies lend you money for one to four weeks for a fee. Some companies have you write a check with the due date or you will sign an electronic transfer form so they can withdraw the money from your bank account on the due date.

Signature overnight loans vary in amounts from $100 to $1500, depending on your need and credit check. Every company has different policies and they may or may not run a credit check for your approval. Most payday companies decide your approval based on your current and past income.

You can request a roll-over that will add on another fee, but will let you keep the original borrowed for another two weeks. If you cannot pay the full amount back to the loan company on the due date, you will have to pay interest rates that are higher than you could ever have imagined. Some payday loan companies charge up to 700% interest rates on the cash they lend out.

You may have thought your credit card had a high interest rate until you looked into payday or overnight loans. You can usually get a cash advance on your credit card for a much better interest rate than a payday loan can offer you. Be sure to look into other options before taking out a payday loan.

Remember that cash advances or guaranteed signature loans should only be used for unexpected bills, such as a car repair or medical bill. If you find yourself using a cash advance or payday loan to pay for every day expenses you will need to talk to a credit counselor about keeping from dropping into further debt.

If you can’t borrow cash through your credit card, you might consider a personal loan through your local bank or credit union. A personal loan can be used for whatever your need and the amounts are similar to signature overnight loans.

You might wonder why someone would consider using a payday or overnight loan company when the fees and interest rates are sky high. The key word is overnight, and these companies deposit the cash into your account either the same day or the following day.

People choose to use these companies because they are fast. Some payday loan companies advertise that they will approve you in less than an hour of receiving your application.

It isn’t hard to find a payday loan application online either. Most companies use the internet, avoiding paperwork, including faxes, altogether. Remember that these loan companies usually bring on more financial damage than financial help.

Consider other borrowing options before you take out a payday loan and find yourself paying intense interest rates for that few hundred dollars you needed tomorrow. Always remember to be conservative when borrowing and only borrow the amount you need and not more.signature overnight loans

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