What Is A Payday Cash Advance And Should I Use One?
If you are strapped for cash, you may decide to use a payday cash advance company in order to help you get the cash you need quickly. It can be scary to know that you need money for something and not have it in the bank. You may become stressed and upset. These are normal feelings that come with a need for cash, but it does not have to be that stressful. Cash advance companies are everywhere. It is just a matter of finding the best one for you.
What is a payday cash advance?
Bluntly put, it is a small loan that is meant to cover your expenses until your next payday. It can be used for anything from car repairs to daily spending habits.
There are many benefits to using this service.
- 1. You can get the money you need immediately.
- 2. There are few limits, which means you have a better chance of applying, even if you have bad credit.
- 3. In most cases, you do not need a co-signer.
- 4. You can get the money you need within 1-4 hours.
Now that you know the benefits of a payday cash advance, it is time to look at the potential negatives.
- 1. There is a substantial percentage rate tagged onto the loan.
- 2. You must be employed and can show proof of employment (generally with a paycheck stub).
- 3. The amount you can borrow is based on your check amount.
- 4. You must pay back the amount owed in about 2 weeks.
How to Find a Payday Cash Advance Company That Fits My Needs
The first rule of thumb is to check out their website or find information about them. You can always check the Better Business Bureau (BBB) online to find out if a local company is acceptable.
Make sure you understand all the rules that will apply. Many companies require proof of employment and identification. The company will calculate the total amount of the loan that you qualify for. This will be based on the amount of your paycheck. Many companies require a post-dated check immediately after the loan is given and signed for. The check is for full repayment plus any fees. This means that on the date expressed, the loan company can cash the check. However, with this option of repayment, you have the ability to go back to the company and pay yourself, whether by credit card, cash or other means. They then give you back the check.
Online payday advance companies allow you to fill out your application online and fax or email your identification information. Once approved, the loan is transferred to the account you provide. The repayment and any fees are then electronically withdrawn from that same account on your next payday. This is a better option for some people.
Some companies will allow you to spread the payments over a month, but not many. The reason is that this is a small loan made from your paycheck. Keep this in mind if you have other bills coming due. This is where many people make their mistakes-they take a payday advance out on their paycheck and do not realize they will need the next paycheck for bills and living expenses.
Many companies press the borrower to take out a loan for as much as possible, but this is not the best practice. You should take out only as much as you can afford.
It is mandatory for loan companies to explain any part of the agreement that you do not understand. Do not feel embarrassed or stupid. Percentage rates are confusing in general. Just remember that you have to ask for an explanation.
What happens if I cannot pay off the loan?
Generally, the loan company will want you to post-date a check or have the funds automatically deducted from an account. If you take one of these options and they cash the check or withdraw the specified amount and it overdraws your account, it is your responsibility. You will have to pay any bounced check fees or overdraft fees. In some cases, banks will not allow the amount to go through unless you have an overdraft protection on your account.
If you have an overdraft protection on your bank account, the bank will cover the entire amount owed to the loan company. You will then be responsible for the overdraft fees plus the amount you were lacking.
If you do not have an overdraft protection on your bank account, the bank will cancel the payment. You will then have to pay an overdraft fee on your bank account, the loan you took out will be considered past due, and more interest will accrue. You will then have to pay even more in interest and it will take longer for the amount to be paid.
How often can I use a payday cash advance service?
There is no set amount of times you can use the service. However, you should know that it is not to be used as a supplement income. The point of a cash advance is to help when something unexpected comes up. If you find yourself needing to use the service more than two to three times per year, you may need to think differently about finances. If you are having trouble keeping up with daily and living expenses, you should look into a budget. There are many free online budget websites out there; or you can make your own with Microsoft Excel templates.
Cash advances can be very beneficial if you find yourself with an unexpected expense and borrowing money from friends and family is not an option. It is also a great alternative to bank loans if you have poor credit. In order to find the best cash advance option for you, search online and look at different websites, or go into stores and see what options they have available. Using a payday cash advance does not mean you are a bad person; it means you are a person in need of short-term help