Immediate Payday Advance � Do You Really Need One?
If you are planning to get an immediate Payday advance, you need to make sure that you are doing it when you really need the money. There may be many reasons for people to go for payday loans - a pile of unpaid utility bills, medical emergency, expensive anniversary gift for a spouse, or other such unexpected cash needs could be your requirements. Payday cash advances are a good option for people who want some extra cash before their next paycheck. When it comes to payday advance loans, having basic information about them, helps in making the right decision. This article throws light on each and every aspect of cash advance. Read on to know more.
What Are Immediate Payday Advances?
These are short-term loans taken for a period of 1 to 3 weeks or until the next payday. They do not require any collateral such as a house or a car; rather your regular paycheck would serve as collateral. When you opt for this loan, the lender would take a post dated check with loan amount plus the finance charges and interest rates. On the pre-decided payback date, the check would be cashed for repayment. Another option for repayment is to give online instructions for automatic deduction of loan amount from your online checking bank account on your next payday.
How Much Do They Cost?
The loan amount varies with each lender, but generally you can get as little as $100 to as much as $1500. The average loan term is 2 to 3 weeks. The interest rate on immediate payday advances is quite high. Usually you need to pay roughly around $15 for every $100 taken.
Advantages
Apart from providing instant cash in emergency situations there are other ways in which payday loans can benefit you. Though there are no credit checks done for the approval of this type of loan, it is an excellent way to improve your credit score. If you make payments on time, this can greatly improve your credit ratings. Another great advantage of this personal loan is that you can use the loan amount as you like, unlike a home loan or a car loan which are dedicated to specific purposes.
The Danger
By taking too many immediate payday advances, people can get trapped in a never-ending cycle of debt. If you fail to payback these loans on time, the penalties are so high that you would never come out of the vicious cycle of debt.
In spite of being careful with finances, there may be times when you need instant cash. Immediate payday advances can get you that extra cash before your next payday, so weigh all the pros and cons by yourself to decide whether you need one.
View the Original article
