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A guide on payday advances online

Are you strapped in cash and need money for car repairs? A few days to your payday but you have run out of food in the fridge? Or you are faced with an emergency situation that needs instant funding? Most people request for payday advance loans when they are in desperate need of money.

Payday Advance loans are fast

It is a fast and easy way to ensure you get cash within a limited period of time. In most cases, individuals request for payday advance loan and they can even get cash the same day.

When should you apply for a payday advance?

Before requesting for a payday loan online, it is important that you first analyze your financial situation to ensure that you are able to repay the loan.  If you do not sooner or later you may find yourself in a debt spiral.

Payday loans are also referred to as cash payday advances

Both payday loans and payday advances are short-term loans offered to borrowers who are in urgent need of cash. Longer term loans are called installment loans and can be issued up to $5000.

Are payday advances easy to get?

The loans are among the easiest ways to access funds for borrowers who need a short-term financial solution. Most lenders will require you to repay the loan on your next payday.

When the loan has matured, the total amount owed, which includes the principle and the total interest is directly debited from the borrower’s bank account.

Is there a maximum amount I can borrow?

The maximum amount that a borrower is eligible to apply for is determined by the state department of business oversight. This is either $500 or $1000 depending on the state you live in.

Since no asset is issued as guarantee of payment for a payday advance, lenders tend to charge a higher interest on the loans.

What happens if I cannot pay my advance back on time?

If the borrower does not repay the loan on time, there is an option for the debt to be rolled over to the following month.

You may end up attracting a higher interest rate, making the loan expensive. Remember, avoid taking a payday loan if you cannot repay the debt on time.

Effect of payday advances on your credit rating

Taking out a payday loan can be the best option for people who need quick funding. But at times, borrowers can be worried that applying for a payday loan can end up affecting their future credit rating.

Just like any other loan repaying the loan on time can help boost your credit score.

It is important to note that even if making timely repayments and complying with the loan terms so that it will not affect your credit rating.At times, taking out a payday loan can indicate to the lender that you have money management issues, and they may deny you a larger loan.

Who uses payday advances?

Anyone in need of financial flexibility can apply for a payday advance. Typically, a payday loan borrower is required to be above the age of 18, be in full-time employment or receive a consistent income in their bank account.

Are payday advances safe?

Just like any other type of loan, payday loans should be used for productive purposes. The loans should also be used for short-term funding.

If you need cash to cater for long term financial solutions, it is important that you consider other types of loans which have lower interest rates.

Ensure that your monthly income is enough to repay the loan and cater for your monthly expenses. Defaulting payments may not only have a negative effect on your credit score, but you will also risk not getting a loan in future.

Features of payday advances

Here are some of the features that make payday loans attractive.

Less stringent credit check policy

Compared to traditional borrowing  payday loan lenders do not impose strict requirements when requesting for the loan.

If you apply for a loan in a bank you may required to issue an asset as collateral for the loan to be approved. But not every borrower has a high valued asset to issue as collateral.

payday advances are unsecured

No security is required as guarantee of payment. Borrowers are only required to have a valid bank account and be on permanent employment for their loan to be approved.

Fast online processing 

Most lenders approve payday loans within 24 hours.

No credit check

Most lenders are reluctant to offer advances to borrowers with poor credit.  This makes payday advances a great alternative for borrowers who do not have an attractive credit rating. You can get a loan with no credit checks or no hard credit checks.

Important considerations when applying for a payday advances

  • Due to the high interest rates incurred in a payday advance, the loans are only meant to cater for short-term financing.
  • Requesting for payday advances on a regular basis can turn out to be expensive.
  • Payday loan lenders also have varied interest rates and loan terms.
  • Before applying for the loan, it is important that you compare rates from different lenders for you to come up with a cheaper loan to meet your short term financial needs.
  • Borrowers are also advised to only apply for payday loans when they are sure to make repayments on time.
  • Rollovers attract extra fees. The debt can also be rolled over to your next payday, making the loan very costly.

Payday Advances – Next steps

First analyze your financial needs to determine if the loan is the best option for you.

Can you afford to make payments on time without struggling with your monthly budget? If your answer is no, then you should reconsider your decision of taking out a payday loan.

If you feel that the loan is what you need then please go ahead and apply with us above!

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