Life unfolds in unexpected ways. Unfortunately, sometimes we're unprepared for the financial repercussions that come with life's ever-shifting sands. Perhaps your car breaks down and needs immediate repairs. Maybe a family member is in dire straits and needs some quick cash. Or it could be that you've fallen behind in a few of your household bills and a bit of fast cash would come in handy. Perhaps you simply want to avoid late fees and bounced check or other bank fees. Whatever your circumstances, there may come a time when you need a payday loan cash advance. But what exactly is a payday advance and what do you need to know about the process? Here are answers to five common questions about payday loans.
1. What is a payday advance? A payday loan cash advance is an unsecured, short-term cash advance. Essentially, your next paycheck is your collateral. When your loan is due, the amount of your loan plus a loan fee will be deducted from your bank account.
2. Can anyone receive a cash advance? There are typically minimum requirements for seeking a payday loan cash advance. For instance, in the U.K., the requirements might include that you be regularly employed, use direct deposit to have your salary paid into an active bank account, be at least 18 years old, and meet a minimum salary requirement (sometimes as low as £250 per month). Often you are required to supply a pay slip documenting your net income and employer.
3. What if I have bad credit? As long as you meet the employment and other requirements, your credit status doesn't matter. In essence, payday advance can double as a bad credit loan.
4. How much money can I borrow? Depending on your take home pay, your first loan can be between £300 and £1000. Subsequent loans can be higher, providing you repay your first loan on time and in full.
It's crucial to keep your personal information secure. In addition, look for a company that offers a simple application and approval process. For example, you should be able to complete an online application, check your email for confirmation of your approval, and then be able to count on your payday loan cash advance being directly deposited into your account. Payday loans can be a lifesaver when you find that you're experiencing a cash crunch. When you take advantage of these financial services, you can often save time, money, and heartache down the road.