All You Need to Know About Payday Loan Advances

Wednesday, January 9, 2013

Payday loan advances also known as instant cash loan or payday advance are short term loans that can be availed at times of contingencies. These can be obtained easily and faster than the normal loans. You need to repay them back only on the subsequent paycheck.

Ways To Obtain Payday Loan Advances

You can apply for an instant cash loan in two different ways:

1. Through retail lending - Here, you need to visit a lender in person for applying and availing the loan amount. In this case, the lender gives you money for two weeks only and you are required to pay the full money along with interest till date on the subsequent paycheck. The interest rate levied is 15% to 30%. Along with the application form, you are required to submit a post-dated check, proofs of regular monthly income and even the latest bank statements. You need to repay the amount borrowed in person. If you fail to do so, then the lender has the right to deposit your post-dated check in the bank or even to withdraw the money from your account electronically.

2. Through online lending - These are more popular now-a-days since they are more convenient. In this case, you just need to fill the application form of the lender via online. You may also be required to fax some documents like copies of check and recent bank statements too. Once the lender has verified your details provided in the application form, the loan amount is deposited directly into your account within a day. Likewise, the lender deducts the repayment amount automatically from your account on the due date.

Merits And Demerits Of Payday Loan Advances

There are many merits associated with an instant cash loan. They are:

1. This is one of the best sources of money which can be availed without any hassles or lengthy documentation.
2. The repayment terms provided by the lenders are not very strict. They are quite flexible and can be made on the subsequent paycheck. You even have option for revising the terms with the permission of your lender. You only need to be ready to pay an additional interest.
3. Even though the process in done through online, your entire details are kept confidential.
4. It is one of most convenient method for obtaining instant cash as it does not require faxing any documents or pledging any collateral. Also, there are no credit checks too.
5. In the long run you are saving money when you are opting for these advances. This is because the other charges associated with a normal loan are comparatively more than the interest levied on these advances.

However, there are few demerits associated with this cash advances. They are:

1. The lender's service charges are quite high.
2. The interest rates levied on these are also higher.
3. If you fail to repay on time, then you might end up paying more than what you have borrowed.
4. Finally, these cash advances are not an answer to your financial crisis in the long run.

So before you plan to avail cash advance, you really need to evaluate various other options too. Opt for these loans only if you have the capacity for repayment. You need to think twice before you opt for payday loan advances.

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