Payday
Loans as a Short Term Cash Solution
It is
not uncommon for people to find themselves short of cash before payday. Ideally,
individuals should have money saved from each paycheck to prepare for financial
shortfalls or unexpected expenses. But unfortunately, life does not always
follow the ideal. Payday loans have become a reasonable alternative to
bouncing checks, pawning personal property, borrowing money
from family and friends, and avoiding
late-payment penalties and negative marks on credit ratings.
Various companies offer payday loans as a quick and convenient
way to get fast cash. If you meet their application requirements, they will wire the
money into your checking account as quickly as next day. You then automatically
repay the loan when you receive your paycheck. That’s all there is to it!
No Fax payday loan cash advances take
the concept one step further by eliminating the need to fax documents to the
lender since in most cases these lenders do
not require the documents other cash advance lenders require to qualify for
a loan. They verify information using other databases and resources.
Commonly Asked
Questions About Payday Loans
What is a payday loan?
A payday loan or a payday advance is a quick and confidential way to get a cash
advance until your next paycheck.
What can I use a loan for?
Your funds can be use for anything you like, such as car bills, phone bills, or
anything you like.
What are the requirements
for approval?
Most services require at a minimum the
following:
• Your account allows Direct Deposit.
• You have held your current job for at least 3 months.
• You have maintained a valid checking or savings account for at least 3 months.
• You have gross income of at least $1200 per month.
What if I have poor credit?
This is seldom a problem. Unlike many other financial institutions, these
services do not require that you
have good credit or, for that matter, any credit history at all. If you have any
questions about qualifying for a payday loan, contact the service directly.
How soon can I receive my
cash advance?
Many providers can approve your
loan application in only a few minutes.
With these services, if you request your loan before 4:00 PM and
receive approval, they can deposit funds into your account the next business day.
How do I receive the cash,
and how to I repay the loan?
When you apply for a payday loan, you authorize the service to directly deposit the
approved amount into your account. You also authorize them to directly withdraw
from your account on your next payday for the same amount advanced plus their fee.
How does the service determine the
amount of money to advance me?
State law generally regulates the maximum advance amount available. Within the allowed range, you qualify for a particular advance amount
based on your current income.
Is my payday loan secure
and confidential?
To assure the privacy of your personally identifiable
information, most services will use a heavy duty encryption program when you submit your
loan application form. In this manner, your non-public information remains completely
confidential. Most services also have clearly stated company privacy policies.
How do I determine my due
date?
For most services, loans are due on your next payday, unless your next payday is less than 7
days away. In this case your check will be held until your second payday. The
maximum advance term is usually 30 days.
What does it cost?
Fees tend to be about $25.00 per $100.00 borrowed and the loan can be extended
in some cases for an additional fee.
Payday loans should not be considered
for your long term borrowing needs. But in situations where you need some
cash right now with very little hassle it can be the ideal solution.
Copyright Ronda Anderson - 2005
All right reserved
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