Financial emergencies are the worst. Whether it’s an emergency room visit or urgent repairs needed on your house or car, you can expect to bleed cash, especially if you don’t have insurance to tide you over. However, what if you are low on to begin?
Why Use Paycheck Advance?
Payday loans are a reliable option if you need cash fast. This type of loan uses your monthly paycheck as collateral, allowing you to get a loan, and they can be approved in a matter of hours, making them a good source of cash for emergencies.
Payday loans or paycheck loans are based on the borrower’s income and are paid on a specified date that usually corresponds to the borrower’s pay dates. The maximum amount of credit a person can borrow depends on how much they earn.
Are you going through a health scare?
A payday loan can help you manage treatment even if you don’t have cash in the bank.
Figured in an accident, and your car needs repairs?
A payday loan can cover costs so you can be back on the road in no time.
How Does a Paycheck Advance Work?
In a paycheck advance loan agreement, the borrower writes a check for the amount borrowed plus financing fees in return for actual cash. The lender holds the check until the borrower’s next payday. The lender can now receive loan payments in cash or cash in the check at the bank as payment.
In online payday loans, borrowers are required to have a valid bank account in good standing. This account is where payday money is transferred electronically on payday and from which repayment is automatically deducted.
Are you dealing with bad credit? No worries!
Paycheck advance loans are not like regular bank loans where your lender looks into your credit history before approving or denying your application. Payday loans are available to anyone, whether your credit is stellar or needs a little bit of polish. Payday loans are great options if you plan to pay off outstanding or old debts so you can finally get rid of the pesky interest payments that are weighing you down.
Will I be able to repay the loan?
One of the most common questions people ask about payday loans is regarding repaying the loan. While it is true that for most payday loans’ AP rates are higher than conventional loans because payday loans are unsecured loans. However, the loan itself is affordable because it is a short term agreement.
You are also free to discuss the loan agreement with your lender to make sure that you can conveniently pay back your loan based on how much you earn per month. Most lenders are willing to help you craft an agreement that works for your financial situation so you can pay on time. For example, you can negotiate to pay off your loan in multiple payments instead of a one-time lump sum repayment.
You can also avail of lower interest rates by staying with one lender for multiple transactions if you have a history of prompt repayment. Many lenders will not hesitate to lower interest rates if you have demonstrated that you are a low-risk borrower and can pay on time.
Is it legal?
Paycheck advance loans are a regulated system of lending available in most US states. They are subject to state regulation, which ensures that borrowers are protected from unscrupulous lenders that charge exorbitant interests and use intimidation to go after borrowers. Most states cap payday loans at 25% to 30% annual interest. Many states also allow lower-cost payday lending.
So next time you’re in a pinch, here are a few reasons to go for paycheck advance loans:
- Safe and secure
- Fast approval
- Fast cash
- Reasonable interest rates
- Easy repayment programs
- Minimal documentation required
- No collateral required
There’s no need to panic when you face a financial emergency. A paycheck advance loan is a readily available option that you can use to get out of these situations without resorting to traditional lenders. Fast, easy, reliable, and flexible, payday loans can carry you through tough times when you need cash right away.