$600 Payday Loan Online
$600 payday loans - what are they, who offers them (locally), are there better options?
Apply with us today to for a 600 dollar payday loan with installment payments. We have a direct lenders standing by to process your application. You could be approved in the next couple minutes and have money by the next business day. Our lenders offer $600 installment loans, easing the burden of paying off a payday loan on your next paycheck.
$600 loan options available to you
There are several types of $600 loans available in the finance market. There are payday loans, installment loans, peer-to-peer lending and traditional loans through banks. Out of all of these, payday loans are one of the best options for taking loans for a very short duration.
What is a payday loan?
Payday loans are a form of short-term borrowing where the lender usually charges a high-interest rate based on the borrower's financial history and credit rating. The next paycheck of the borrower backs this type of loan, and the principal amount is equal to a portion of the following salary received by the borrower. Payday loans come with high-interest rates and provide credit for a short duration of time. These loans are also known as cash advance loans.
How do payday loans work?
These short-term loans are often termed as predatory loans as they charge high-interest rates on small amounts such as $600. Added to this, they also have hidden provisions that charge extra fees from the borrower. Small credit merchants and credit unions offer payday loans through their physical offices. These are the locations that allow for the onsite application of credit and verification of credit history of the borrower. Online lenders might also offer certain types of payday loans.
To successfully apply for a payday loan, the borrower must provide payslips given by their employer which shows their current income levels. The principal of such loans is based on a percentage of the short-term income of the borrower. Certain payday loan providers also use the borrower's wage as collateral. Other factors that decide the candidacy of such loans include credit score and credit history which is often obtained by a hard credit pull during the time of the application.
Why a $600 payday loan should be avoided
Payday loans charge exorbitant rates of interest on the borrowed sum which can go as high as 500% in annual percentage yield. While most states have usury laws that prevent such excessive charging of interest and limits them to 36%, payday lenders have certain exemptions which allow them to charge high rates of interest. There are many loopholes in state lending practices that are exploited by such payday lenders. , and individual states have even banned the issuing of such payday loans.
While the law clearly states that the lenders must reveal all of their charges to the borrowers, a lot of these expenses are overlooked during the time of application. Most payday loans are for 30 days and are made to help the borrower during a short-term financial problem. The loaned amount generally varies from $100 to $1,000. Quite often these loans are rolled over due to additional charges which result in borrowers becoming repeat customers.
Installment Loans - a better option
Installment loans are a type of loan that allows borrowers to borrow a sum of money and repay the loan over time. Usually, the interest rate on installment loans is fixed, and the money is paid in equal amounts each month. There are specific key differences between installment loans and payday loans. The first being, the interest rate on installment loans are not as high as payday loans. Added to that, there are no hidden charges on installment loans. Unlike payday loans that are backed by the next paycheck, installment loans are paid in part by part fashion each month.
Secured loans are usually supported by a physical asset as collateral. The reason why most people go for payday loans is that it allows for lending even with a bad credit history. However, in such cases, it is better to go for a personal installment loan which is also possible with an imperfect credit record. There are secured and unsecured types of installment loans. Secured installment loans are backed by collateral whereas unsecured installment loans only have a promissory note of repayment from the side of the borrower.
Why choose installment options over a payday advance
Installment loans are not at all predatory and are a better option than payday loans. While $600 payday loans are for short durations of time, installment loans are more stable and allow for easier repayment of the borrowed amount. The interest rates on installment loans are generally fixed. People usually take installment loans for buying things that they cannot afford to pay in cash. Some other uses of installment loans include clearing debt and building credit. Also, unlike $600 payday loans, there is no rerolling due to non-payment of the borrowed amount. One only loses their collateral. While payday loans are notoriously expensive, installment loans are easily manageable through proper financial planning. One needs to weigh all of their options and consider their credit history before making up their mind.
Disclaimer: 600loan.com is not a lender and does not make financing decisions. Must be 18 to apply. Use short term credit sparingly.