Are you considering the service of a payday loans company? Are you in need of some fast cash, and don’t have friends or family that you can borrow from? A cash advance can give you the funds you need when your bank account is low and you have an unexpected bill or emergency. There are some things you need to understand, however, before you go for that fast loan.
If you apply online, you will accelerate the approval process and save time by not having to go the office in person. All you have to do is enter all of your information and approval can be confirmed in an hour or so. Of course, weekend applications will take longer. Once the cash advance is approved, your funds are directly deposited directly into your bank account, usually within just a few hours of approval.
Cash Advance companies will require proof that you are a full time employee, and they might have a minimum pay benchmark. For example, they may only lend money if you are making more than $1000 per month. Ensure that you have a copy of your bank statement and most recent pay stub.
Interest rates are higher than conventional loans, sometimes more than 20%, which is comparable to most credit cards; however, because these are short term loans, you’ll end up paying much less interest.
The cash advance loan becomes due when your next pay check arrives. The entire amount of the loan must be paid back with the arrival of your pay check. For this reason, it’s important to make sure that you don’t borrow more than you can repay. Many companies have a limit on how much you can borrow.
You don’t need to own your own home, or have a good credit rating. The cash advance companies don’t concern themselves with your assets or your credit – their primary concern is that you are working full time. The exception to this rule is bankruptcy; if you have an undischarged bankruptcy on your record, your chances for approval drop considerably. Self-employed persons or those in commission sales may also experience more difficulty in getting approved. The companies consider these methods of employment very risky – what would happen if that sale didn’t close or you had a decrease in revenue that week?
Fast loans companies are not meant to be used on a regular basis. If you find that you are becoming dependent on them, it might be time to redesign your budget or get a better paying job.
A cash advance can be an invaluable resource when your car breaks down, or your freezer has stopped working! Remember to read the fine print on the contract and make sure you understand exactly what interest rate you’re paying and when you are required to pay the loan back. Don’t be afraid to ask questions and research the company thoroughly. When you compare companies online, you can read other customer’s reviews to find out what their experiences were like with the company.