Payday loans as the name suggest is the financial help that can be availed from lenders in between paychecks. You have to repay them on the day of next paycheck. As a matter of fact, they have to be repaid within 14 days of availing the payday loans.

On the day of the paycheck they gain automatic access to your account and take back their loan through the ACH or automatic clearing house

Payday loans come with high rates of interest which ranges from $10 to $30 per $100 borrowed. The APR that is usually charged for payday loans is 650%. Payday loans are extremely useful for averting great financial losses. For instance you have to pay a loan of $1000 within the next 30 hours.

Failure of repayment would cost you several thousand dollars as penalty and further would damage your credit. In such cases payday loans are extremely useful for avoiding penalties as well as keep your credit profile unaffected. Moreover you can get the loans within the stipulated 30 hours which is due to the instant approval and instant availability of funds by the payday loan companies.

The process of acquiring payday loans is so easy that it has masked the criticism that financial experts express. It just requires a few minutes of filling of the application form with the very basic details including your personal data, employment details, salary limits and of course the loan amount and your social security number. The elimination of the need for credit check has made payday loans even more popular.

A more attractive feature of payday loans is the fax less service which augments the simplicity of the payday loans. If you are unable to pay your payday loans on time, then you can go for the option of rolling over or flipping which means that you can renew your loan with new rates of interest and new time period.

But financial experts warn that at one point of time payday loans after repeated renewal reach very rates of interest as high as 1000%. Some of the companies offer relaxation to the time period if you inform them beforehand.

But certain companies adopt aggressive collection practices if you fail to repay the loan. Further more there are online cheats who involve in identity theft and account piracy after they gain your Social Security Number.

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