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Introduce Yourself with Cash Advance Loans

By Edited Nov 4, 2015 0 0

Payday loans are high-interest, short-term loans for small amounts, generally under $500. Ideally, when you need an immediate small cash loan for an emergency, without going to a tradition lender and waiting for a decision, you can switch to a payday loan. Today, there are numbers of online and local financial firms that operate under similar terms in order to provide short term loans. Consulting one with several questions will help you get a broader sense of your specific loan.

According to Payday Loan Consumer Information, a division of the Consumer Federation of America, “A cash advance loan interest rates range from 24 to 48 percent that is quite high.”

For people with bad credit, it comes as a boon as an online short term loan company doesn’t usually check credit before extending the loan. So even with bad credit it is possible to acquire these kinds of loans.   

Who Qualifies for a Payday Loan?

To qualify for an online payday loan, there are certain qualifications that must be met. You should be at least 18 years of age and must have an active checking account that has been in existence of at least 90 days. There is no credit check required, so a wide variety of man can qualify for these types of loans. But you should be employed and have verifiable income (earning at least $1000 in a month). 

The loan process is quite easy as you can apply in person, online and on the phone. The verification process hardly takes 20 minutes and within 48 hours the required amount automatically deposits in to your bank account or in some instances can get cash. There are no upfront costs associated with it. It is totally a secure and safe short term loan.

What are Pros and Cons of Cash Advance Loans?

There are many positive and negative aspects related to these loans. Before applying a payday, it’s quite essential to take some time to ponder over the loan.

Pros

In case of emergency like you require paying your electricity bill on time, then a payday might be a good idea. If you don’t want to touch your fixed deposit and at the same time, you require small cash, then a short term loan might be a smart move. It doesn’t require a credit check, so it wouldn’t hurt your credit score. 

Cons

These loans tend to be a very high interest rate. It is why because they require no credit check and within in 48 hours, you receive the desired amount. Requirement of payday loans clearly hint that your financial situation is not quite good. Adding the payday loan will be tough to pay back the next month.  Never use a short term loan for paying your personal debts. It is ideal for one-time emergency.

How to Find the Best Payday Loan?

To find a payday loan just like any other loan, it’s better to contact several lenders for interest rate quotes. The interest rate may vary considerably from one lender to the next. Thoroughly check the quotes to find the best rate.  Don’t forget to ask the lender for all fees associated with the loan. Find out about re-payment terms and ask the lender how long you have to pay the loan back. It’s better to take help from the Better Business Bureau (BBB) before applying a loan in order to know any customer complaint associated with the company.

Cash advance loans are sensible decision. If you have good backups but due to some reasons you are unable to use them, then a payday is ideal for you.

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