Payday advances are known as fast cash loans, payday loans and cash advances. Most of these loans are considered unsecured while charging an amount that is referred to as a finance fee.
There are not specific interest rates for these loans, but the finance charge that is issued may range from 10% to 30% of the required amount, depending on the lender. It is advisable that a borrower investigates which lenders carry the best rates before applying for a loan.
The following list is reasons why you might attain a payday fast cash loan:
1. When you are facing sudden cash crunches and in need of immediate cash, payday advances are considered to be the best. It is quite easy to obtain this loan, with very few legal requirements. The borrower is just required to be of 18 years and working at a monthly salary of $1000 or more.
2. Time crunch becomes a big issue while borrowing money as plenty of documentation is required. And when the need is urgent the conventional way of borrowing with processing may not be the right option.
In such a case payday advances come to rescue and you can apply for these loans and get them transferred in our accounts, by operating from itself. Application for the loans can be made online, and the money is transferred in the account immediately.
3. There are many people who either have a bad credit history or don’t have it. In such cases, banks and financial institutions do not provide loans easily, besides the extra hassles of documentation and the many forms that are required to be prepared. In such a case, we opt for payday advances, which do not require so much documentation as well as credit history.
As mentioned above, the best way to obtain a payday loan is through market research. The following list states how payday advances can work to our advantage.
1. In the case you miss payment through your credit card it shall help you by providing you low credit rates.
2. In case you have title loan, and you have not made payment on time, there is a high chance that you lose your property. But with the help of a payday loan, you can regain your property.
3. If there are problems regarding rental payments it is better to opt for a payday loan, rather than facing the anger of the landlord.
There are consequences to not paying off your payday loan. We talk about them below. We mentioned earlier that they have higher rates than traditional loans. The price of such rates is to pay for the convenience of fast cash.
Payday advances are not long term fixes to your financial problems. If you apply for a payday loan and think that you can depend on I to solve your issues, you may be in deeper debt than ever before.
It is important to pay off your payday loan as soon as you can because there is not way to escape this kind of loan. If you fail to pay off your loan, you must be prepared to deal with the consequences that will soon arise.
Here are such consequences listed:
1. Overdraft Charges – Banks can levy high overdraft charges and penalties if your account has insufficient funds which caused your check to bounce.
2. Penalty from Lender – The payday advance company can require you to pay penalties based on the stipulation of your agreement.
3. Humiliation and Harassment from Collection Agencies – If your unpaid loan is referred to a collection agency, you might be subject to constant humiliation and ignominy among your peers and the community. They have the liberty of contacting you multiple times including calling your home, work place, or any other number.
4. Threat – Collection agencies also employ emotional abuse with threatening calls.
5. Marred Credit Rating – Non-repayment of payday advances can be reported by the lender to any of the three credit bureaus in the US, causing severe damage to your credit score. In addition, by the time you decide to pay off your loans, lenders rarely report the repayment to credit bureaus. If this happens, it will be hard for you to qualify for other loans.
6. Legal Action – Your payday lender has the right to turn to legal action under the court of law for writing bad checks. If the court proves you guilty of writing bad checks, you can spend unnecessary time and money. You must also shoulder attorney fees, which will be much bigger than your initial repayment amount.
Be smart and determine if a payday loan is really the best option for you and make sure you are aware of how to pay it back when it comes time to do so.