Payday Loan | Cash Advance

     Payday loans, also known as cash advances are small short term, high interest loans intended to cover vital expenses until the borrow receives his next paycheck. These loans are usually high interest loans with interest rates up to 400-900% The characteristic loans are between $100 and $1500, and usually have to be paid back within two weeks, the time it takes for the borrower to receive his next paycheck. In 2006 the United States Congress passed a law that capped predatory lending to military personnel at 36% APR. This is because officers were concerned that payday lending only worsened the soldier’s financial problems and interfered with military operation schedules.

     It has been shown that the majority of profits that payday loaners make is from repeat borrowers who cannot afford to pay off their existing loans, therefore have to pay late fees each time. Also, payday loaners do not check credit history, so payday loans are a great option for those who can not get other loans because of bad credit history. If a borrower knows that he can pay it back, payday loans are the best choice for quick and easy cash loans.

Check out http://en.wikipedia.org/wiki/Payday_loan for more information about payday loans.