Everything To Know About Payday Insurances Online

Payday insurances are insurances that are given for a very small period of time to ensure that they are repaid once the next salary or income from their source of profit. These insurances have a very high interest rate and are called by various names like payday advance, payroll insurance, salary insurance, small dollar insurance or cash advance insurance. Payday insurance can be offered to anyone regardless of their credibility. The bank does not see the creditworthiness of the borrower in case of granting this type of insurance as it is given for 15-20 days only and not long term. However, the borrower should keep in mind that getting a payday insurance will not increase his credibility in the market. However, he must have a stable income, permanent bank account and at least 6 months work experience to avail this insurance.

Online payday insurances are becoming more and more popular these days. The best thing about online payday insurance is the simple application process. The application takes less than 5 minutes to complete and the portal is usually open 24 hours a day. The borrower can simply apply for the insurance online and the funds are transferred by direct deposit to the borrower’s account. The insurance repayment in such a case is withdrawn electronically directly from the borrower’s account after receiving his next salary or after the post-dated check is due. Here is a list of direct payday lenders:

  1. cash checks: They submit their approval application within 5 minutes by submitting insurances online or in their US offices
  2. CashAdvance.com: They offer online payday insurance once the customer is approved by checking their valid account and not any prepaid or savings account.
  3. Central cash: This is one of the oldest payday lenders in the country with a 24*7 online submission portal.
  4. insurance: This also provides the customer with an approval response within 4 minutes of the completed application form. It is one of the largest of its kind in the country.
  5. Blue Trust Insurances: It finances insurances between $300 and $1,250 in almost every state. With a repayment period of approximately 6 months.., there is no penalty for these insurances to repay.
  6. the lion: They provide insurances to almost every state in the country at varying rates and terms in each state. It has insurance programs available to consumers in all credit score ranges.
  7. net credit: Provides instant approval decision with no limits for first time borrowing. Applicants are eligible for insurances of $1,000 to $10,000.
  8. Maxlind: They have many different insurances and terms and creditworthiness is not a criterion to be taken into consideration. Offers personal insurances of up to $1,300.

There are some jurisdictions that limit the amount of interest charged on insurances including payday insurances. Depending on the method used, the annual percentage rate (APR) for each insurance may vary. In the USA, for example, the Uniform Small Insurance Acts (USLL) set the APR between 36% to 40%. The main advantages provided by these types of insurances provide great profitability to the industry, the welfare of the families is increased as the people who do not need short-term insurances can take advantage of long-term insurances easily and provide a service that is not available in the market as per the requirements usually of the insurance by the people who have exhausted all their other options to buy short term credit. This type of insurance is also criticized by some people on the grounds that they drain money from low income communities by charging exorbitantly high interest rate. Also, in some countries, the collection practices of lenders are very aggressive in contrast to countries like the United States where there are standard collection practices established by law.