Although most people think they need a checking account to do business, the truth is that a savings account will also work. For instance, savings account payday loans are also possible, meaning you still get loan money but it goes into savings instead of checking.

As you will discover, there are some things to know when it comes to choosing a payday loan going into savings.

What Type of Loan is This?

It’s normally called a savings account payday loan and it’s really very simple to get. You just have them deposit the money into your savings account instead of a checking account. It is simple, but there is also a little more that you may need to consider.

A few banks don’t appreciate this happening – for some reason, they don’t like amounts being credited to a savings account in this way. But this is rare – you should check with your bank to see if savings account payday loans are accepted, and if they are, what some of the fees that they might apply.

The payday loan is not really any different and you’re able to get an advance of your paycheck. This might be anywhere from $100 on up to $1500, depending on where you go. You can use that money for anything that you may need to use it for.

The only real difference is that the money gets put into your savings account. Then when you get paid, they can take the money out of the savings account or you can send it to them another way.

Best of all, there is no hassle with this loan option. In fact, many companies will give you an immediate loan and without heavy fees attached.

Downsides

Savings payday loans are different from traditional loans in a number of ways. What you will find is that there are no serious disadvantages of this type of loan. In fact, savings account payday loans are easy and the money can be used when and how it is needed.

Of course, remember than an annual percentage rate applies, as well as some fees. Therefore, always read the information carefully before making any decisions. Because of this, it is important to look at a number of options before diving head first into a loan. For instance, some places will only charge a $10 fee while others charge $50 or more. The more you can educate yourself the better loan you will find.

In Summary

If you find that you need a loan and are worried about where the money will come from, you might choose from savings account payday loans. When in a tight financial spot, they can certainly help reduce stress.