Payday loans are the fastest and most convenient option for getting a
cash advance for emergencies before your next payday. However getting
payday loans and their repayments involve certain important aspects.
Herein we are attempting to answer all your general queries related to
Payday loans and we hope it will serve as a tool to open up any mystery
surrounding payday loans or cash advance.
What Is A Payday Loan Or Cash Advance Loan?
We
daily come across many loan types like housing loan, personal loan, and
education loan. However, the payday loans are a new buzz in the market,
and it is very popular. This loan is known by many names like "Cash
Advance", "Paycheck loan", "Check loans", and "Payday advance loans".
Let us understand what is a payday loan or cash advance loan and how and
when it should be used for your maximum advantage. Payday loans are
unsecured loans, which can be used for meeting your emergency financial
needs and is paid back out of your next paycheck on your payday. Thus,
payday loans are the shortest tenure loans among the other loans
available in the market.
Are there any limitations on payday loan or cash advance loan usage?
Many
a times we face a situation when we need money badly but feel like our
hands are tied as our payday is still several days away. In such a
scenario, we either have to shelve or defer our plan of purchasing
something or go for a heavy interest credit card loan to meet the
obligation. The requirement could be to pay up unexpected medical bills,
your kid's school fee, to avoid bouncing of your issued checks or any
other financial obligation. In such trying times, payday loans or a cash
advance comes in handy. Thus, you can use this cash advance for
whatever purpose. There is no restriction on the usage of payday loans.
Am I eligible to receive a payday loan or cash advance loan?
The
best thing about payday loans is that they can be had even if your
credit rating is not very good. The second best thing about payday loans
is that taking a cash advance does not affect your credit rating. All
you need to be eligible to receive the payday loans is to have a running
checking account and a regular job.
How should I apply for a payday loan?
To
apply for the payday loans, we would say it is easier to do than to
say. You can apply for payday loans online using Internet. You may be
required to supply some basic information such as your Name, Address,
and your employer details. Some companies offering payday loans may ask
for your Bank Statement or pay stub over fax. The documents required by
these companies for payday loans are minimum in comparison to other
types of loans.
What is the fee charged for payday loans?
Before
applying for payday loans, we suggest that you scan 5-6 companies for
the fees they are charging. Some companies offer payday loans without
any fee for the first week.
How much cash can I get with a payday loan?
The amount of payday loans ranges from $100 to $1000 depending upon the repaying capacity of the borrower.
What is the length of payday loans?
Normally
a cash advance is supposed to be paid back on or before your coming
payday. Therefore, the maximum length of payday loan could be up to 30
days. However, some companies are flexible with respect to the loan
duration as well. Payday loans can be extended until the next payday.
This extension of payday loans however comes at a price.
How long does it take to get a payday loan?
Payday
loans are much easier to get and in less time than other loans. After
applying for a payday loan online, you will get a telephone call from
the payday lender. After completing the small formalities, the cash
advance will be credited to your checking account the next business day.
Does this mean I can enjoy my pay without waiting for my payday?
Before
you jump for a payday loan, please note that the rate of interest
charged for these loans are higher than other loans. Extending the
duration of payment will only increase the fees charged. The payday
loans or cash advance loan should be used very prudently and only for
meeting financial exigencies that cannot be avoided. Please remember
that getting a payday loan or cash advance loan too frequently could
upset your monthly budget and you may find it difficult to get out
