Payday Loans and 100 Day Loans

Payday loans have become a norm with most people these days. They provide them with an easy way of availing handy cash for momentary requirements, which may crop up when your payday is not near. The no background check or sound credit history requirement of these loans have made them a favorite of most people today. However, in a world full of competition, it is not possible that a concept stays and conquers the market today for a very long time. Instead, there is always an improvement on the existing concepts, re-introduced into the market.

One such innovation over payday loans is what we today know as 100 day loans. As we know, in case of payday loans, the cash advance is extended to the borrower for a period which extends till the next payday of the person. Once the payday arrives, the cash advance is deducted automatically from the cash account of the person. However, the 100 day loan offers the debtors a limit of approximately three-month (100 days) in order to pay off the cash advance extended to them. The application process of the 100 day loans is also very simple and as the recent statistics say, close to about 80 to 90 percent of the total applicants make through to qualifying for the cash advance.

However, there are some shortcomings with these loans. To start with, the interest rates and commissions charged by the promoting company over the cash advances were comparatively higher than other types of loans. The nail in the coffin was, however, that the cash advance limit set aside by the promoting company for these loans was considerably less. This is the reason why customers are still glued on to payday loans and the fast approval and fund transit which have now become a trademark of these loans.

Article Source: Ezine Articles