Payday Loans

How And When To Get Payday Loans Cash Advance?

Payday loans cash advance is a small amount of loan that is issued for a short period of time. The repayment period is usually not more than just a couple of weeks. The qualifying criteria are also very simple. These loans seem to make the best choice for those who are going through cash crunch and have some urgent financial requirements. There can be an array of situations when you may need instant cash but you do not have the same in your bank account, such as for an unexpected car repair, a medical bill, and others. Since these cash advances are quickly approved, people are often tempted to use these lending programs. But, it is very important for you to keep in mind that there are certain risk factors associated with these programs. Therefore, you have to be very careful while you are making a decision on when to go for it. Following is a brief overview on it.

Know The Risks

It is true that payday loans cash advance have been very popular. In fact, even now that sixteen states have banned it and the FTC (Federal Trade Commission) has warned consumers against it, the demand for these programs are still intact; in fact, the demand is only growing with every passing day. But, it is also true at the same time that thousands of payday loan borrowers are getting bankrupt every year. Therefore, despite its wide popularity, it is not wise at all to ignore the risk factors associated with the same. It is an open secret that these loans charge an extremely high rate of interest, which can go as high as 700% per annum or even more. Some lenders do charge ‘lower’ rates, such as up to 200% per annum, but the average APR still comes around 400% – 500%. Add to this the risks created by provisions like automatic rollovers and unfair collection practices. The end result is that most of the borrowers get trapped into a vicious cycle of payday debt.

When To Go For It?

Payday loans cash advance can make the right solution for you only when there is no better alternative. But, even in that case, you should consider signing up for it only if you are 100% sure that you can afford timely repayment. Do not make a decision just on temptations. Your decision must be based on facts and figures. When people are in an emergency situation where they just want some instant cash anyhow, they often tend to accept any program that gives them money while they overlook the risks involved with the same. These types of people often regret their decision at a later stage when they find themselves in a much bigger financial trouble on the next payday. Therefore, you must do your calculations thoroughly. You must have a clear picture on how much exactly you will have to repay on the set due date and whether you will have that much money in your account then.

How To Get It?

As said earlier, the qualifying criteria for payday loans cash advance are very simple. The amount of your monthly salary must not be less than three-times the amount you are borrowing. For example, if you want to borrow $500, your salary must not be less than $1500 per month. You must also have a checking bank account in your name, where your salary gets credited every month. Though most lenders claim to offer a completely faxless and paperless process, you should still expect to submit a few documents, such as the pay stubs as well as the bank statement for the last few months. You can get faster approval if you also provide your landline phone number and an active email address.

But again, you are advised to go for payday loans cash advance ONLY IF there are no better alternatives available out there, which is rarest of the rare situation. If you look around and do a little research in the right direction, you can easily get plenty of more convenient and less expensive ways to get instant cash. You can get plenty of ideas by visiting the ‘payday loan alternative’ under the ‘payday loan’ category on this blog.

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