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Payday loans are the fastest and most convenient option to get cash advance for emergencies before your next payday. However, there are some important aspects involved in obtaining and repaying payday loans. Here we are trying to answer all your common queries related to Payday Loans and we hope this will serve as a tool to unlock any mystery surrounding Payday Loans or Cash Advances.
What is a payday loan or cash advance loan?
We come across various types of loans like housing loan, personal loan and education loan on a daily basis. However, payday loans are a new buzz in the market, and it is very popular. This loan is known by many names such as “cash advance”, “paycheck loan”, “check loan” and “paid advance loan”. Let us understand what a payday loan or cash advance loan is and how and when it should be used to your maximum advantage. Payday loans are unsecured loans, which can be used to meet your emergency financial needs and are paid back from your next paycheck on your pay day. Thus, payday loans are the shortest term loans among other loans available in the market.
Are there any limits on payday loan or cash advance loan usage?
Many times we are faced with a situation when we are in dire need of money but feel like our hands are tied as our pay day is still many days away. In such a scenario, we either have to delay or postpone our plan to buy something or go for heavy interest bearing credit card debt to meet the obligation. It may be required to pay unexpected medical bills, school fees of your child, avoid bouncing of checks issued by you or any other financial obligation. In tough times like these, payday loans or cash advances come in handy. Thus, you can use this cash advance for any purpose. There are no restrictions on the use of payday loans.
Am I eligible for a payday loan or cash advance loan?
The best thing about payday loans is that they can be obtained even if you don’t have a great credit rating. Another great thing about payday loans is that taking a cash advance does not affect your credit rating. All you need is a current checking account and a regular job to avail a payday loan.
How should I apply for a payday loan?
As for applying for a payday loan, we’d say that’s easier said than done. You can apply for a payday loan online using the internet. You may be required to provide some basic information like your name, address and details of your employer. Some payday loan companies may ask for your bank details or fax payment stubs. The documents required for payday loans by these companies are minimal compared to other types of loans.
How much is charged for a payday loan?
Before applying for a payday loan, we suggest that you scan 5-6 companies for the fees they are charging. Some companies offer payday loans for the first week at no charge.
How Much Cash Can I Get With Payday Loans?
Payday loan amounts range from $100 to $1000 depending on the repayment capacity of the borrower.
What is the length of the payday loan?
Cash advances usually need to be repaid on or before your upcoming pay day. Therefore, the maximum tenure of a payday loan can be up to 30 days. However, some companies are also flexible with the tenure of the loan. Payday loans can be extended till the next pay day. This expansion of payday loans comes at a cost, however.
How long does it take to get a payday loan?
Payday loan is very easy to get and in less time as compared to other loans. After applying for a payday loan online, you will receive a telephone call from the payday lender. After completing the minor formalities, the cash advance amount will be credited to your checking account on the very next business day.
Does this mean that I can enjoy my salary without waiting for my payday?
Before you jump in for a payday loan, please note that the rate of interest charged for these loans is higher than other loans. Extending the payment term will only lead to an increase in the fees charged. Payday loans or cash advance loans should be used very judiciously and only to meet those financial needs which cannot be avoided. Please remember that repeatedly taking out payday loans or cash advance loans can put a strain on your monthly budget and make it difficult for you to get out of it.
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