If you have questions about cash advances and payday loans that you don't see asked below, please contact us. We'll do our best to get you an answer fast!
Are payday loans the same as cash advances?
Why do financial experts advise against obtaining cash advances
based on my next payday?
Learn more about the relationship between
poor credit and cash advance paycheck loans.
They are very similar. The only difference from any other type of
cash advance is that a Payday loan cash advance revolves around your
next paycheck. It is, in effect, a cash advance on your next
paycheck.
They do so because of the cost of these types of loans. A cash
advance on your paycheck is luxury you pay a high price for, both in
the fee paid to get the advance in the first place, and the interest
charged on the money borrowed.
What can a payday loan be used for?
It is entirely up to the borrower what they spend their loan on, be
it to pay bills or access fast cash for other purposes. The loan
company has no say about what the loan is spent on.
Why do people choose to pay the high interest and charges of payday
loans?
Generally speaking, people who take cash advances against their next
paycheck find themselves in a financial bind and have no other
method to access fast cash. More often than not, these individuals
either have no access to credit, or have already used the credit for
which they are eligible.
Is it easy to qualify for a payday advance?
Different loan companies have different rules about qualifications
required. Most require that your paycheck be directly deposited into
your account, that you allow the company to directly debit your
account on the prescribed date, that you have had a valid bank
account for at least three months, that you have held your present
job for at least 3 months, and that your monthly income meets a set
amount.
How much can I borrow?
Again, different companies have different guidelines. Some companies
set a maximum of $500, whereas others will lend you up to $1000.
How much does a payday cash advance cost?
The rates that lenders charge for a cash advance on your paycheck
vary. Both the interest rate and the fee paid for the loan often
varies depending on the size of the advance. Those who choose to
extend their loan payback will pay additional fees to do so, the
fees being dependent on the amount of the advance.
How quickly can I access my cash advance?
Typically, a cash advance application completed online can be
approved in minutes. Most companies will then ask you to fax all
required documents. Once they have been received (typically the same
day), the lender will deposit the cash into your bank account within
24 hours.
What additional documents are required?
Most companies will request that you fax three items. These include;
a personal check showing the account number submitted with your
application, your last two or three pay stubs (demonstrating direct
deposit), and your most current bank statement.
Is there any advantage to applying online instead of in person?
Companies generally follow the same rules and timeframe stated
above. The main advantage people receive from applying online is
convenience. They can get a cash advance deposited into their bank
account within 24 hours - without leaving the house.
Is it safe to apply online?
Provided that you ensure you are apply through a secure server, your
personal information is safe. Secure servers encrypt the information
you input, making it extremely difficult to intercept. This is the
security method used by every reputable online vendor. You can
determine if you're on a secure server by looking for a small lock
icon in the bottom right hand corner of your browser
Can I access advance funds on my paycheck if I have a poor credit
rating?
An individual's credit rating is not relevant to their ability to
access an advance on their paycheck. Once the required documents are
received by the lending company, your cash advance can be approved
based solely on the fact that you have a job and will be receiving a
paycheck.
How do I receive the cash advance, and then pay it back?
Most lenders offering loans against a paycheck request that you
allow the company to both directly deposit, then directly withdraw
the amount of funds and fees agreed to, on designated dates.
Can I trust a company to withdraw only the amount agreed to?
Most lending companies providing payday loans, because they are
authorized to use the Federal Reserve Wire System, are obligated to
follow the NACHA rules and regulations. These regulations guide all
lending practices, ensuring they follow both federal and state laws.
As a result, withdrawals can only be the amount agreed to by the
lender and borrower.
More questions? Contact us.
