The popularity of payday loans
As we try to live, but sometimes to live within necessary means become impossible. And then the only rescue appears in the form of payday loans, other words - overdraft cards, which help to hold out until the next salary at work.
The difference between a credit card and a card with an overdraft facility is similar to the difference between the chair and chair without a back. Not everyone will understand, what the difference is. When using the card with an overdraft facility the client has an opportunity to enjoy not only his money on card, but also means from the bank.
In each case, the bank sets payday loans limit - the maximum amount that the client has the right to borrow from the bank. Usually, overdrafts are given to outstanding staff of enterprises - corporate clients of banks, under salary projects. The size of the overdraft limit is usually no more than 70-90% of the monthly salary of the employee. Accordingly, the higher monthly earnings, the greater the overdraft limits.
In other words, if your card out of money you can borrow them from the bank to pay. Not for nothing more overdrafts are called payday loans, which in a short period became so widespread among people.
The card with an overdraft facility has several important differences from the credit card. Firstly, on a card with an overdraft facility you can store your own funds, while on the credit card - only borrowed funds, which gives the bank. Secondly, involves the rapid repayment of overdraft, while credit card can be used for a long time. Credit cards used by customers who have either used "to live on credit” and receive certain bonuses on their credit cards or open up them for "just in case" and is used when absolutely necessary.
When making credit card banks often require that the client provide a full package of documents. In connection with the financial and economic crisis, many banks tightened requirements for clients to avoid potential bad debts. This, in turn, somewhat reduced interest to credit cards. If you can plan your budget well, you can pay on time and avoid unnecessary bureaucratic procedures, when taking payday loans.
Of course, it must be remembered that the debts must be repaid on time; otherwise you can spoil your credit history. And then, because of the small debt, banks will deny loans to a more impressive sum. And if you need to buy household appliances, or perhaps an expensive gift, or just grab the money before salary, payday loan is simply irreplaceable for you!