If some unexpected expense has crop up, and it is still days
away from payday, it is possible to take out a type of short-term
loan known as a cash advance. A cash advance, or in other word
a payday loan, can help you if you are in a bind by using your
upcoming paycheck as a guarantee for repayment. A cash advance
is a fast way to get the money you need. Though, it is important
to know exactly what this type of loan is, what the terms are,
and what the risks are before you decided to take this financial
A cash advance is more or less a short-term, unsecured loan, usually granted for a smaller sum of money (less than $500). Taking out a cash advance is fast for a smaller amount of cash because there isn?t the paperwork and approval process involved with which you would have to deal with longer-term bank loans. This can normally be done at a small check-cashing outlet or a pawnshop. And at present, more and more online lenders are getting involved with quick cash advances. In general the borrower promises to repay the loan from his or her next paycheck. Furthermore the loan is made when the borrower either gives the lender a check or a debit authorization for the amount borrowed plus the finance charge. Theoretically speaking the lender consents to hold the check or authorization until the borrower?s next payday. Remember that when payday comes, the lender may either cash the check, or the borrower may get his or her check back by paying the full loan amount and finance charge. It sounds simple and with little consequence, but there are some things to be aware of.
In case if you are thinking about taking out a quick cash advance loan, you
probably have very little cash flow to begin with, and few other
alternatives. It is of utmost importance that you know what
you are getting into. The most pivotal thing to be aware of
is the finance charge that is applied to the loan upon borrowing.
In an ideal scenario this fee can be as high as $50. Therefore,
if whatever you are taking out the cash advance for has a consequence
less than the applicable fee, you might want to reconsider.
On the other hand if you are not able to repay the loan
right away, be aware that the interest you are charged continues
to accrue, thus increasing the payoff amount (there is no refund
of applied interest if the loan is repaid early). If this is
not a factor, and you are able to pay the loan back immediately
upon receipt of your paycheck, then perhaps a quick cash advance
might be the solution for you.
There are cases when a quick cash advance loan is not a smart option. It is advisable that you don?t borrow money against your upcoming paycheck for impulse purchases, or just to have some cash in your pocket. This kind of loan can get very expensive very quickly, especially if it is not paid back promptly. You will find yourself in more dire financial crunch than before. That?s why, only utilize this type of service for serious or emergency financial situations. Unfortunately, few customers who take out quick cash advances often do so repeatedly, and often use it as a method of getting credit extension. This is implemented by paying only the finance charge to the lender, and providing a new check or debit authorization repeatedly. Instead of a temporary financial crunch, many borrowers are experiencing continuing financial problems with which they apply a band-aid in the form of a quick cash advance loan. This is not wise in long run.
According to experts a quick cash advance loan is only a quick solution to a short-term financial problem. In case if you have a bill that is due and do not want to risk hurting your credit rating, if you have an emergency medical bill that must be paid, or if you are in danger of bouncing a check, a cash advance may work for you. On the other hand if you are aware of the finance charges you will have to repay in addition to the loan amount, and you are able to repay the loan immediately, this type of loan can be a useful, one-time solution to a tight financial state.
Payday loan and Cash Advance loan stores are readily available in majority of areas.
Before that first you must decide if you would like to talk to someone in person about your payday loan/cash advance, or if you would like to do your payday loan/cash advance business online.
In case if you choose to see someone in person, there are Payday loan and Cash Advance loan stores in most cities. Just check your local telephone directory for a location near you. In addition you may want to call and ask what paperwork or verifications you might need to have with you in order to obtain your payday loan or cash advance quickly.
Most need at least one form of picture identification, your most recent check stubs and your most recent bank statement. Each Payday loan and cash advance loan store has it's own needs, so some may vary from another.
What?s more each Payday loan/ Cash advance loan carries a fee and an interest rate. It is quite mandatory that these fees and interest rates should be very well outlined for you by the Payday loan company.
There are normally set rates for set amounts of the Payday loans or cash advances. For instance, a $300.00 dollar Payday loan or cash advance may carry a $25.00 flat fee. That clearly means, as long as you repay your Payday loan or cash advance on or before the date agreed upon by you and your Payday loan agent or company, $25.00 is all you pay!
Of course it is worth noting that there are higher fees and interest rates set in place in the event that someone should default on there Payday loan or Cash Advance loan. It is for these simple reasons that you should read your Payday Loan/ Cash Advance loan paperwork carefully. In case if you don't fully understand something, make sure you ask your Payday loan agent to explain it further.
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