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A payday cash advance is a short-term financing tool that is granted based on current employment, not credit rating. Typically, the entire amount of the loan, plus interest, finance and application fees are due in full on the next payday. The amount of money that you can borrow is based on the net pay that you receive each payday. There are different rules in each of the different US states; payday cash advances are also available in Canada, Australia, and the UK.
To find the best payday cash advance, think about how you plan to pay the loan back. If you will be able to pay the loan back in full on the next payday, look for the cash advance store with the lowest interest rate or service fees. These rates are listed on the company’s websites or in their stores.
The rate is usually provided based on a loan of $100 US Dollars (USD) for ten days. Some companies describe it as a flat rate, regardless of the length of the loan. Check the fine print to ensure that you qualify for this rate, as it may be offered based on a weekly payroll. If you are paid a biweekly or monthly, this rate may not apply to you.
In most cases, the borrower writes a check to the lender for the loan amount plus any fees, and the lender gives the borrower the money. Online lenders usually request bank account numbers and other information, and the deposit the loan into the borrower's account. On payday, the loan is due. Depending on the lender, the check may be cashed, or the amount electronically deducted from your bank account. You may also pay back the loan in person in many cases.
If you cannot pay the loan back, you may face overdraft or other additional fees. It's important to contact the payday lender if you think you will not be able to repay the loan as expected. The lender may be legally required to work with you to come up with an extended payment plan. Some companies provide an option to pay only the interest and a portion of the loan on the next payday, although this is not legal in all locations.
In some circumstances, the principle amount of the loan is automatically carried over to the next paycheck. This is the most expensive way to pay off a payday cash advance, as the interest continues to accumulate. This is not legal in all locations, so it's important to find out what the laws are in your jurisdiction to make sure you don't have other options. Use this method only as a last result and ensure that you create a plan to pay off this loan as soon as possible.
Qualifications for a payday cash advance vary by location and lender. In many places, you will need to have been employed for at least three to six months with the same employer. You must have a bank account, often with at least 60 days of banking transactions.