Payday Advance Loans
Payday advance loans are short term loans that are intended to cover borrowers’ expenses until their next paycheck. For this process, borrowers write a personal check equivalent to the amount borrowed plus the lenders fees and receive cash. The lender then hold the check until the agreed upon time when they cash it and the loan is repaid.
Advance loans may have received a bit of a stigma over recent years, but when the economy is tight and money is scarce, these loans provide an invaluable service to many who otherwise would have no other options available to them.
Borrowers can redeem the check by paying the loan in cash or pay the lenders charge and then roll the loan over for another pay period. But if the borrower’s account is short of funds to cover the loan, they may be faced with a bounced check fee from their bank in addition to the costs of the loan.
These loans may also accrue extra charges if the borrower rolls it over to extend the repayment period, or is unable to pay on time. The application process is very simple, requiring either to complete an application form online or by fax. From there the loan is transferred by direct deposit to the borrowers account. The loan repayment and the lenders fee is also electronically withdrawn from the borrowers account the next pay day.
Although most online payday advance lenders do not perform credit checks for loan approval, they may verify the borrower’s check writing or loan history from the national databases. These loans are beneficial because they keep you from borrowing more than you need to, and because even if you have a bad credit rating, you can still access them.
These loans also come in handy when you are faced by a serious financial crisis that can’t be ignored. Also, because of the fact that payday advance loans are short term, you are able to repay them without high interest fees as the repayment period is usually immediately after your paycheck. Just make sure, if you choose to go online and fill out the application form, you should ensure that you only choose a reputable site that is secure.
The speed at which a paycheck advance is approved is incredibly fast. It is designed this way so that it will be available to solve your problem and help you to meet your immediate expenses. The money is credited into your account within 24 hours of application.
All of the factors of a paycheck advance make them quite convenient and you can always negotiate with your lender on the amount and dates of pay back.