What Are Payday Cash Advances?
If you’ve ever had your car break down when your bank account was running on empty, you may have at least thought of looking at payday cash advances. Sometimes, you can take care of the problem by relying on friends and family members to get you through. Sometimes, though, this is just not something that you can afford to do. During these times, a cash advance can really help you out.
Basically, a cash advance is an advance on your paycheck. In order to get money in this way, you probably have to be making a minimum of a thousand dollars a month. You’ll have to show paycheck stubs and history to the lender so that they can confirm this in most instances.
When you take out payday cash advance, you’re basically getting your paycheck in advance from this company. Of course, they’re also going to charge you interest. This means that if you expect a $600 paycheck, you can only take out $550 in an advance. When your check comes in, you will owe over $550 because of your interest payment that has to be made at that time.
This type of advance isn’t a personal loan that you can pay back little by little. It must be paid on the day that your paycheck comes in. This means that you need to calculate that day before you take out the loan. If you get paid every month instead of every week or every other week, you may have some trouble with this. Often times, lenders expect payment within two weeks, since people are typically paid within this time period.
There are some similar options to payday cash advances in today’s market. One of them is a personal unsecured installment loan for a short term loan online. This type of loan gives you a longer repayment period and expects you to make payments over time, much like a car payment. The only difference between this type of loan and a car payment, in fact, is that the personal loan doesn’t have any collateral and is probably going to be paid back within two or three months.
Before you use any payday cash advances to get out of a financial scrape, try to learn as much about payday loans online you’re getting as possible. Learn about the interest and the fees involved. This will help you make the smartest possible decision with your money.