Payday advances are known as payday loans, cash advances and internet personal loans. With so many consumers in need of short term cash to get them from one paycheck to another, payday advances provide a simple solution to your cash needs.
You can very easily go online and apply for a payday advance loan in less than five minutes. This is much simpler than driving to a local cash advance store. You can apply for a loan from the comfort of your office or home, and even have the cash advance sent to you in less than one hour in some cases.
Payday advances are usually made to customers based upon their employment and their income, not based on their credit history. If you had great credit than you could most likely get a small personal loan from your bank, however, most banks will only make a personal loan for no less than $5000.
People who have a need for immediate cash usually only need a few hundred dollars, and payday advance companies usually will allow you to borrow between $100 and $500 online.
Payday advance loans are similar in effect to deferred presentment loans that you may have seen at your local check cashing store. The difference is that the online payday advance combines the speed of the internet and electronic transfer to get you the cash that you need in a shorter amount of time than driving to the check cashing store or payday loan store.
Fees on payday advances are calculated in a set amount, usually between $20 to $30 for every $100 that you borrow. This saves you the effort of calculating what the APR is on the loan or even compounded interest.
When you borrow $200 for a cash advance service, you will owe back between $240 and $260, depending on the lender. If you cannot pay back the full amount on your next scheduled pay date, you can simply pay the fee and extend the loan until you can afford to pay back the whole amount.
This gives you the flexibility to determine how long you will keep the loan before repayment. Most lenders require that the loan be paid back within two weeks, however you can pay a little bit more to have a longer term.
Some people are not quite aware of why payday advances exist. There are many reasons why people seek these types of loans, though lenders to not require you disclose your reason like a bank will. If a bill is due and you have insufficient funds, a payday advance can save you from being charged a late fee, and may even prevent your credit rating from being damaged.
It’s beneficial in case of an emergency. If your car breaks down and you need it to get to work, you now have an option to get cash to fix your vehicle.
You can obtain up to $500 to care for your financial matters. You can get the money deposited into your checking account the same day, depending on your qualifications.
The amount that you can borrow with a payday advance is usually between $200 – $500. Some online lenders will allow you to borrow up to $1000, however offers do vary.
Your job and your paycheck are the only collateral you will ever need. All of your financial and personal data should be maintained in a secure environment.
Many elderly people will find that their healthcare expenses happen when they don’t have the money immediately to fund them. Medications are critical for many people and these types of loans can really help ease the worry of someone who needs care.
A few things to be aware of are to research the lender you are considering borrowing from. It is recommended that you go through a reputable lender.
Online lending is quite popular as people do not even need to leave the comfort of their own homes, and if this is how you choose to obtain a loan you must make sure that the lender is located within your country. Lots of people in cities find it easier and more reassuring to visit a brick and mortar lender.
Make sure you read all the fine print and understand completely the lenders requirements.
Jack R. Landry has a PHD in financial services and has written hundreds of articles relating to consumer services and online cash advances. He has been a consumer advocate for nearly 25 years.
Jack R. Landry