What Are Payday And Cash Advance Loans

What Are Payday And Cash Advance Loans



What Are Payday And Cash Advance Loans?
Payday loans,​ or​ cash advance loans,​ are short-term loans that use a​ personal check to​ be held for future deposit in​ exchange for immediate cash .​
Borrowers write the​ check for the​ amount to​ be borrowed plus the​ finance charge .​
Lenders will hold the​ check until your next payday,​ when the​ loan amount and fee must be paid in​ a​ lump sum.
If you​ cannot pay the​ entire loan amount,​ you​ can pay the​ finance charge only and roll the​ loan over for another pay period .​
Another finance charge will be applied to​ the​ amount.
The borrower can redeem the​ check for cash or​ allow the​ lender to​ deposit it​ in​ order to​ pay back the​ loan.
The loan amount ranges from $100 to​ $1,​500,​ and the​ term is​ usually two weeks .​
To qualify,​ you​ need a​ bank account in​ good standing,​ identification,​ and a​ steady source of​ income .​
The lender does not conduct a​ full credit check or​ verify your ability to​ repay .​
Online payday loan lenders can often qualify in​ one minute!
The big drawback of​ payday loans is​ the​ fees .​
Charges range from $15 to​ $30 to​ borrow $100 for a​ two week loan .​
Every time you​ roll a​ loan over to​ another pay period,​ you​ may pay more fees .​
Understand that if​ you​ are short on​ cash now,​ you​ might still be short on​ cash when you​ get paid next,​ and these loans aren’t a​ magical solution to​ that problem .​
If you​ aren’t able to​ pay the​ fees,​ you​ may also get fined for bounced checks from the​ lender depositing your check .​
While there are many critics of​ payday loans and the​ debt associated with them,​ proponents of​ these loans point out that few options exist for people with poor credit if​ they have an​ emergency and need cash .​
If it​ is​ your only option left for getting money quickly,​ at​ least be aware of​ the​ costs so you​ can plan for repaying the​ loan quickly.




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