Payday loans are accessible to almost anyone, and are usually available in a range of $100 increments. Before a person decides to take out a payday advance, they should understand exactly what a payday loan is for, how the acquisition process works, and what he or she shouldn’t do with a cash advance.
When to Use Payday Loans
Sometimes, emergencies arise when we least expect them. Such emergencies are often costly, and can present a problem for the consumer with little extendable credit or disposable income. When such a situation occurs, a payday advance can be a lifesaver. Consumers use cash advance loans to cover a range of situations, including:
- Emergency medical care
- Car trouble and restoration
- Unexpected bills
- Utility repair within a place of residence
How to Get an Advanced Payday Loan and How Much to Get
There are a variety of ways of obtaining a cash advance loan from an assortment of lenders. The amount of money the consumer is able to acquire usually ranges from $100 to $500, but some lenders will offer as much as $1,500. Lenders willing to offer more may require more information from the applicant, such as a faxed copy of a pay stub or utility bill to establish residency. Most lenders have the same basic requirements for applicants:
- 18 years of age or older
- Steady employment for a minimum period, usually 90 days
- Income of at least $1000/month
- Checking account with direct deposit
- Valid work and home address information
For a payday advance online, a valid email address is also a requirement. Credit checks are rarely if ever required; in fact, many lenders encourage individuals with a poor credit history to utilize payday advances, as such loans may be their only option. Many online payday loans can be applied for in about five minutes, and if approved, monies can be paid out in 24 hours. When deciding how much money to apply for, it is generally recommended that the consumer only as for as much as necessary.
Things to Consider About an Advanced Payday Loan
While payday cash advances may seem like the answer to all one’s troubles, they can create new problems if not used responsibly. Cash advance loans are meant to offer a little breathing room in between consumer paydays, and should not be used as long-term source of spare cash. While refinancing or extending a payday loan is an option, it may cause the interest rate to increase. Some lenders are very flexible with repayment options; others will take the entire amount plus any accrued interest and fees when a designated date is reached. If a consumer finds himself or herself taking out new cash advance loans to pay off old ones, they may end up buried in debt for which they are unable to clear.
Payday loans can be an excellent option for the consumer who needs to cover a large, unexpected expense. Like any other loan, the applicant is advised to read all fine print before agreeing to any loan terms. All lenders operate differently and will have different loan conditions. Executed in a smart fashion, a payday advance check can be an invaluable asset to a desperate consumer.