Payday advance loans are types of credit that go by different names: postdated check loans, deferred deposit loans, check advance loans, or cash advance loans. In essence, these are all payday loans.
So what are payday loans?
A payday loan or payday advance loans are short-term borrowings extended to a borrower based on their income and credit score. Why are these called payday advance loans? The principal amount is usually a portion of the loan applicant’s next paycheck. The borrower is merely making a “cash advance” on their expected salary.
Understanding Payday Advance Loans
First, you need to apply for a payday advance loan from a reputable lender. There are different sources of payday advance loans. You can opt to take out a payday advance from an online lender or through a lending firm near you. The main difference between these two is that an online direct lender lets you accomplish the loan application form and requirements online. If you choose to go to the nearest lender’s office, you will wait in line for your turn to submit a loan request. By taking out a payday advance with Personal Money Network or similar websites, you don’t have to drive to the lender’s office to submit your loan request. Thanks to technology, borrowers can obtain a loan without leaving their home or office.
Obtaining a payday advance loan from a direct lender online is simple and straightforward:
- Go to your preferred online lender’s website and fill up an application form.
- Make sure to supply the correct information to prevent delays or complications.
- Wait for the lender’s feedback. The lender verifies the information you provided and may also pull up your credit history to gauge your creditworthiness.
- Once a lender grants your loan, you will sign a contract that specifies the terms and conditions of your loan.
- The online lender electronically transfers the proceeds of the loan to your bank account.
Take note that you are legally obliged to settle the loan on your next payday. The due date is usually two weeks from the day you took out a payday advance. Failing to pay the borrowed amount results to additional charges.
Why You Should Get a Payday Advance Loan
Payday loans are associated with bad financial management. Why would someone need to obtain additional cash in a hurry? The truth is, many people experience cash shortages all the time. Do you need money to pay for a sudden car repair, or extra money to pay for emergency medical bills? If you don’t have enough funds to tide you over the next payday, a payday advance loan will come in handy.
- Easy Loan Process
Payday advance loans are easy to obtain. You can take out a payday loan from your chosen online lender or reputable alternative lending firm. The entire loan process can be finished in several minutes to a few hours, depending on where you decide to get it. Traditional lenders and banks have stringent requirements and methods that may not be suitable for borrowers with urgent financial needs.
- Quick Access to Funds
There’s no faster way to acquire additional funds than a payday advance loan. With a few clicks, you can submit a loan request and wait for a loan provider to give you feedback. If you are eligible to take out a payday advance loan, the funds will be available to you in a few hours up to one business day.
- No Restrictions
Banks and conventional lenders will ask you to indicate the purpose of your loan. With a payday advance loan from a direct lender, you don’t have to emphasize where you will use the funds. The money from a payday loan can be used for any purpose as long as it is not illegal.
- Become Debt-Free Earlier
A payday advance loan is a short-term loan that won’t keep you tied up in debt for a long time. As long as you pay the debt on time, you don’t have to worry about keeping up with payments for months or years.
- Suitable for Borrowers with Poor Credit
It is challenging to get a loan from a regular lender when your credit looks bad. A payday advance loan is suitable for people with weak, bad, or zero credit. As long as you are gainfully employed, a direct lender will grant you a payday loan.
When used properly, a payday advance loan can benefit you in so many ways. You can get the cash that you need in an instant without worrying about your credit score. Despite all the negative press that payday loans get, it is a handy tool that gives immediate relief when you have zero cash.