Cash / Payday - Payday Loan

100 - 2 500
Easy Payday Loans
Fast / Quick Payday Loan
No Fax Payday Loan
Online Payday Loans
More on Payday Loans
Payday Loans
$400 Payday Loan

A $400 payday loan can be a lifesaver for those with bad credit and low incomes who need money fast. It can also be a very costly arrangement because of the high interest and excessive fees associated with such loans.

A payday loan is a high interest, short term advance of money. It is also called a cash loan because such loans were traditionally paid out in cash given directly to a borrower. It is called a payday loan because such loans traditionally came do on a borrower’s payday.

Today, many cash loans involve an electronic funds transfer of money directly into a bank account, usually a checking account. Quite a few of these loans are paid by an arrangement in which the lender can take the principal and interest of the loan out of the bank account.

Why Payday Loans Cost So Much

A $400 payday loan can cost a borrower a lot of money because of the high interest and fees associated with it. In many cases a borrower will end up paying $100 or more in interest and fees in addition to the loan itself.

Many cash lenders will charge 25% or 30% interest on their loans. This can add up to $100 in interest on a $400 payday loan.

Cash loans are short term loans which means they must be paid back in a very period. Usually two weeks to a month. When the period expires the loan will have to be paid back or renewed. Most lenders will charge a high fee for this renewal usually $25-$50.

The interest and fees on cash loans can add up very quickly which makes them a very profitable business. Cash loan lenders are willing to make these loans available to persons with bad credit because of the high return on their investment.

How to Get a Cheaper Payday Loan 

It is possible to get a much better deal on a $400 payday loan by going online. Many online payday lenders will charge much less interest than storefront lenders. Some of the online lenders will waive the high renewal fees on cash loans as well.

Those with good credit can get a very good deal on a payday loan by going online. Persons who have verifiable income such as a salary or business cash flow can also get a better deal online.

To get an online payday loan you will probably need a bank account because online cash lenders use direct deposit to send funds to your bank account. These lenders should be able to wire money to any modern bank account.

The biggest advantage to online payday loans is that a borrower can choose from hundreds of lenders. Searching for a cash loan on line can help a borrower save money.

Exhaust Alternatives First

Never get a $400 payday loan until you have checked into other potential sources of money. Pawn shop loans, home equity loans, home equity lines of credit and credit cards are usually much better deals than cash loans. These lines of credit usually come with lower interest rates and better terms than cash loans.

Government benefits such as unemployment insurance, food stamps and Social Security are available to all citizens. The advantage to these benefits is that they may pay you money at no cost to you. Remember the taxes you paid in the past pay for these benefits so check them out when you need them.