Overview of Payday Advance Loans
Do you find yourself cash-strapped in between pay checks? Getting a payday advance loan may be able to help you get by.
Whether we admit it or not, we sometimes come to a point in our lives when we are in dire need of cash and we have nowhere to find it. It does not need to be for leisure activities; oftentimes, we are faced with great ordeals such as a hospitalized family member, a sudden death, or emergency needs for school. Whatever it is, we could always take advantage of cash loans whenever available. One of the most popular types of loan for employed individuals is a payday advance. Learn more about pay advances and how you can qualify for one.
Payday Advance Loans 101
A payday advance loan is given to any employed individuals upon the company’s approval. Loans of this type can be as little as $100 to $1000 and the approval is relatively faster than other loan applications. Most people opt to avail of payday loans especially if they have history of bad credit. Their credit reputation is important if they want to avail of loans given by banks or other financial institutions. But with quick payday loans, the approving committee does not need any of your credit rating as long as you are able to submit proof of employment and income. So how does it work?
Payday advance loans are given on a short-term basis. One the application for loan is filed, it is subject to review by the lending company. It will be reviewed based on the importance of the loan, urgency, amount, and your overall employee status. In many cases, the loan is approved especially if you are a permanent employee. For temporary ones, the lender may consider approving loans of little amounts. You should also note that loans are a form of financial risk to the organization and they are just providing it for deserving and long-term employees because they somewhat give a safety helmet.
An approved loan, depending on the amount, shall be payable within 14 to 30 days. It is automatically deducted from your next paycheck, but be forewarned that this may incur a somewhat higher interest rate. For cooperative or labor organizations, payday advance loans are usually offered. The funds used to dole out for members’ loans are also from their monthly contributions. But unlike lending company-approved cash loans, payday advances given by labor organizations may have a smaller interest rate.
Warning for the Borrower
Since short-term cash loans of this kind do not require financial documentation from the applicant and does not rely on credit card ratings, it becomes so tempting to apply for huge loans and renew it all over again. This is where the problem of debt starts. Payday cash loans will immediately take away your due payment from your next salary leaving you with very little balance on your paycheck, thus, you will be forced to take on another loan. Consider very carefully if you really are in need of a loan for very important purposes. If not, try seeking out other alternatives so you will not end up losing your monthly salary. Use cash loans only for highly important emergency cases.