Payday Cash Advance
A payday cash advance can be an effective way to obtain a usually short term loan in the range between about $100–$1,500 at most companies who specialize in this financial service.
Requirements for Applicant
Most people who apply for a payday cash advance are in a financial bind of some kind or another. They might be having trouble coming up with the car payment one month or paying a health insurance premium. There are certain criteria to qualify to receive the money. The applicant needs to have a checking account that has been established for at least three months. He also needs to usually show proof that he is both employed and that his income is about a minimum of $1,000 per month. There’s usually no credit check with these loans. These parameters are what the lending companies feel makes the applicant a comparatively safe risk to offer the payday cash advance.
Receiving the Funds
The specific amount of money requested for and determined to be a good deal for the loan company is usually wired directly right into the borrower’s checking account. Some companies are able to offer this electronic service in as little as one hour while other companies require at least 24 hours. This electronic debiting into the person’s bank account eliminates the need to travel to the lender’s office who’s giving out the payday cash advance. It also saves the borrower from having to wait a long period of time to see if the approval process finally went through. It’s very reassuring to receive the payday cash advance so rapidly when it’s so urgently needed.
Paying Back the Payday Cash Advance
The payback process often starts very soon after the funds were released. The payday cash advance company and the lender arrange on an initial payment date and a subsequent repayment schedule. If the borrower doesn’t remit each installment payment by the due date, many companies will debit the entire amount of the advance from the person’s checking account all at once. Fees for a payday cash advance can be steep. Some lenders charge as much as $25 for every $100 borrowed, so that’s $250 in interest that needs to be paid back on a $1,000 loan. Because these loans are risky to the lenders, they have to protect and cover themselves financially for the inevitable defaults and losses they can suffer by the borrowers who can’t or won’t pay the money back.
