When it comes to payday loans, the procedure behind getting one is quite simple and already familiar to many people. However, many people as well might not have known that there are certain variations to the payday loan. In fact, there are several different types of loan that are pretty much the same as payday loan, but they are usually called differently for they have slightly different offers to make and these differences have to do with the way of applying but also with the purpose of taking a loan. Thus, let us have a look at some of the offered variations.
For instance, there are many banks that offer a possibility of taking a short-term loan (a payday loan) via mobile phone text messaging. Actually, there are also certain companies called TxtLoan companies that specify in this way of applying. If your paychecks or any other funds are electronically sent to their accounts, you can easily apply for a loan by simply texting them.
The terms concerning loans taken via text messaging are very similar to the usual payday loans, but they can be even more favorable since the total amount of the interest rate and fees is usually no more than ten percent of the sum that you want to take. Of course, just like with the regular payday loan, the borrowed money will immediately be available for you to withdraw and the total amount of the loan along with the interest rate and the fees will be deducted from your account when you receive the next regular deposit into your bank account.
However, there is also the so-called tax refund anticipation loan which you do not pay back on your next payday, but upon the receipt of the refund of your income tax. Since this is the case, it is technically not a payday loan, but they have very similar characteristics when cost and crediting are concerned.
There is also another very peculiar type of payday loan which is called title loan, and the peculiarity of it is that it is by your car. However, it is available only to those who are the in clear title of the car which entails not having other loans. The highest amount of money that you can take is a part of the resale worth of your car. A similar variation exists for the title loan as well and it is the logbook loan which is secured by the logbook of the car which is retained by the lender. The terms of these loans are somewhat better than those of the regular payday loans since they are secured and thus not of a great risk to the lender.
To sum up, these are some types of payday loan that are maybe not so popular and known to the public as the regular payday is. Hopefully, this article provided you with sufficient information so that you can easily decide which of these payday loan variations bests suits your own state of affairs.