Payday Loans Research Paper

While it seems like the whole country is feeling a cash crunch in these hard economical times many just don't seem to have enough money to pay for bare necessities anymore, and most have already pawned everything they can at the local pawn shop. There are many options to get cash fast including payday loans and signature loans.

Payday loans are fairly easy to obtain and do not require a credit check. Many payday loan companies merely require a valid state ID or drivers license, proof of income, an open active checking account and your social security card. While these loans usually have high interest rates, they are one of the easiest ways to get money quick. Most of these loans are based off of your current income so your loan won't exceed your income, where as loans from your bank would be based upon how much debt you currently have. Payday loan companies generally give you fourteen days to pay back the loan, and your due date is based upon your payday. They are renewable, so you can have it for as long as you need it. Some states have put a
limit on how many times in a row you can take out a payday loan. In the state of Oklahoma you are allowed five consecutive loans before the state requires a forty eight hour "cooling off period" before you can renew. Oklahoma also has a law preventing you from loaning from more than two different loan companies at the same time. The easiest way to find out what your state laws and restrictions are is to contact your nearest payday loan company, easily located in your yellow pages.

Signature loans, or unsecured loans, are a bit different than payday loans.
These are generally based upon your credit, and require a state ID, drivers license, social security card, open and valid checking account, and proof of income. Although some unsecured loans can only be obtained with a good credit score, there are places out there to help people with bad, little or no credit at all. The best way to find which one is best for you; contact your local unsecured loan office, located in your local yellow pages. Signature loans do not require any collateral for the loan, only your word (your signature) that you promise to pay. Much like payday loans, these are usually have high interest rates so be sure to ask before you loan how much the total will be. Unlike payday loans that are due every payday, signature loans are generally split up into equal payments over a longer period of time sometimes making it easier to
repay.

Both forms of loans are very quick and easy ways to obtain cash quick. Be sure to keep in mind that they both have very high interest rates, so be certain that you can repay what you loan. Non payment of both have different consequences. If you have not paid your payday company for your loan, they will immediately deposit your check to be cleared. If your check does not clear your bank account, they will prosecute you for the full amount of the loan, including court fees and account fees. A smaller loan can quickly turn into a nightmare if not paid. Signature loans take many of the same steps. Both of these loans can eventually end in jail time for fraud if not made current. But don't let that scare you too much, as these loan companies will work with you, to keep it from going too far. Anyone considering taking out a loan from either of these options should do their homework thoroughly, and fully understand what each unique company has to offer! All companies offering these loans should have plenty of information to provide you with the easiest way to get cash now.

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