About Payday Loans and Cash Advances
A payday loan / cash advance is similar to a bank loan - only payday loans / cash advances are a lot easier to qualify for, and enjoy a shorter term.
What are Short Term Personal Loans?
Short term personal loans are loans intended to meet an immediate, short term cash need, such as an unexpected bill, vacation, or other unique circumstance.
Short term personal loans are taken out from a lending institution, and then repaid during the specified amount of time, usually less than 12 months.
Short term personal loans are not intended to finance large projects or fix a financial problem that is considered long-term, but rather to meet a cash crunch need.
What is a Payday Loan or Cash Advance?
A payday loan or cash advance is a type of short-term personal loan for a smaller amount, loaned for a shorter period.
It can range anywhere from $100 to $1,000, depending on the customers income. Loans are available in multiples of $100.
Payday loans usually have a term of 15 days but can can have a term of up to 42 days (depending on the customer's pay frequency), and are due on the customer’s payday following the current coming payday.
Payday loan lenders usually allow customers to apply for another loan on the same day their existing loan is repaid.
Whether a customer has good credit or bad credit, they can easily apply for a payday loan.
The process is easy.
The application is usually processed instantly, and if approved, the cash is transferred into the customer’s bank account as early as the next day.
The use of a payday loan is diverse.
Payday loans can be used for unexpected expenditures such as car repair, overdue bills, groceries, etc.
The general consensus of a payday loan is to bridge the gap until payday.
It is access to cash when you need it, and to spend on whatever you need it for.
The cost of a $100 cash advance is typically less than the cost of a bank dishonour fee, less than paying late fee's for your rent, and certainly more convenient and private than having to visit a bank.
Difference between other Short Term Personal Loans and Payday Loans
Short term personal loans are generally similar to payday loans but are for a longer period.
The main difference is that short term personal loans are not due on the customer's following payday, whereas payday loans are due due on the customer’s payday following the current coming payday.
A short term personal loan is still going to have a short term, but it won't necessarily be due on the customer's following payday.
Short term personal loans can be secured or unsecured.
Short term personal loans that are secured will have some form of collateral.
Many times this is the title to your car or some other valuable that you might have.
If you do not pay back the loan, the lender can repossess this item.
Sometimes, you may be in need of a fast cash advance, so that you could meet an unexpected money crisis.
Car repair and other unexpected bills usually occur at inconvenient times.
In case you do not have the extra cash to meet these unexpected expenses, you could really consider applying for a fast payday loan / fast cash advance.
A fast payday loan / cash advance is similar to a bank loan - only payday loans / cash advances are a lot easier to qualify for, and enjoy a shorter term.
Chances that your application for a bank loan may be denied are high as banks have a requirement of sufficient income, a collateral and good credit rating.
A fast payday loan generally has a 15 day term but can have up to a 42 day term term depending on your pay frequency. Therefore your loan is due on the payday following the current coming payday.
It requires that the applicant must be at least 18 years of age.
The payday loan lender would also be checking out /confirming your salary and employment.
While the lender is keen to help you out, it also wishes to satisfy itself that you can repay the loan.
It renders you eligible to receive funds up to a maximum of $1,000, with a payday loan / cash advance.
Some lenders allow larger sums to be borrowed.
Taking the circumstances of the borrower into consideration however, some cash advance lenders would expect that at least half the loan amount will be repaid in two weeks, and the balance in a month.
Such loans are called 30 Day Payday Loans.
How can a Payday Loan / Cash Advance help you?
Are you in a tight situation and need a helping hand in the form of a cash advance? ...
How good was it as a teen, when your parents helped you out with a bit of cash when things were tight?
Well now you're a bit older your parents may not be quite as willing to hand over the dough whenever you need it. Well not to worry, there is help. If you've got a steady job that employs you full or part time, then you can get instant cash advances in under an hour.
Once you're a member it gets even better with access to instant cash advances 24 hours a day!
For a small fee of your total loan amount, you can get cash advances from $100 - $1,000 dollars, which should be enough to fix any unforseen situations like an expensive phone bill, electricity bill or even the forgotten birthday (because sometimes they just pop up out of nowhere!)
With cash advances being available online, once you're approved it takes just a short while for the money to be transferred to your account!
Even better still, there is no paperwork involved.
Once you are a member you can get your cash advances in under an hour.
Payday loan lenders help you out by giving you cash advances when you need them, but without digging the hole any deeper.
That's why cash advances are fairly small and you can't take out another cash advance until the first cash advance has been paid off.
When you take out your cash advance everything is clearly explained and if you have any questions help is only a phone call away.
It's easy. Get cash and get on with your life.
Why get a Payday Loan / Cash Advance instead of a Credit Card or Personal Loan?
Most people don't trust themselves with a credit card.
It's just too easy to put off repaying a credit card and let the balance grow and grow.
For example, let's say you borrow $5,000 on a credit card charging 1.46% interest per month.
If you only make the minimum payment - usually the greater of 3% of the balance or $10, it will take you 215 months to pay off (that's nearly 18 years) and you'll repay a massive total of $9,411.
Personal loans are good for long term borrowing or larger amounts.
But think about it - if you only need a few hundred dollars, is it worth borrowing the extra money needed for a minimum loan amount and paying it for the next 3 years?
You'll have forgotten what you needed the money for!
With a cash advance, you have to repay on a set date, so it disciplines you to stay on top of it, repay it and forget about it.
The solutions are strictly short term - up to 42 days. Other lenders want you to repay bigger amounts than you need over long periods.
Payday loan Lenders want you to repay as quickly as possible and get on with your life.