Posts Tagged ‘Cash advance checks risk factors’

Everything You Want To Know About Cash Advance Checks

Cash advance checks are small amount of short-term payday loans, where lenders allow you to borrow a smaller sum of money against a post-dated check of a larger amount. The margin between the two is the profit for the lender; they justify doing this by claiming this margin actually includes interest charges as well as other fees, such as loan process fee, approval fees and others. Though these types of cash advances are very popular, it does not mean that they make the best financial option for those who need quick money to meet some urgent financial requirements. Despite the aggressive advertisements that lenders do in support of these check payday loans and despite the lucrative features they claim these loans offer to the borrowers, it is very important for you to understand that these loans are extremely costly and risky. Following is a brief overview on some of the major aspects associated with the same.

How Exactly Does It Work?

I have my whole family taking these now. My daughter experiences less stomach aches and everyone has less gas. Viagra uk! Erectile dysfunction (ED) treatment can be effective.
Good product and long expiration date; arrived quickly. Generic cialis. Each of them has been approved by Indian FDA and also certified internationally.

Cash advance checks allow consumers to borrow money just by issuing a post-dated check even though they currently do not have sufficient fund in their bank account to honor that check. Lenders still agree to lend money believing that when the due date comes and when the check will be sent to the borrower’s bank account for collection, there will be sufficient fund out there and that they will be able to get their money back. A certain amount of lending fee is charged on these checks and the fee varies from one payday lender to another. It means if you are issuing a check of $600, you will get a lesser amount of cash, after deducting the lending fees, which can be somewhere around $50 to $80 (or even more). In short, you have to pay a large sum

building muscle mass supplements

of money in terms of lending fees to borrow a loan using this option. The lenders send the check for collection on the due date and collect their money.

What Happens When The Check Is Bounced?

When you borrow money using cash advance checks and the check issued by you gets bounced on the due date, you will face an array of harsh consequences. To start with, both your bank as well as the payday loan company will charge check bouncing fee, which can prove to be very costly for you. Besides these penalty charges, you will also have to pay interested for every single day of delay you make in repayment. The interest rates charged by cash advance lenders usually range from 200% per annum to 800% per annum. In order to avoid the check bouncing fee, you get an option to request the lender for extension in the repayment period, which lenders usually accept. Such extensions are termed as renewal or rollover and are usually approved for a minimum one month. Though you can avoid the check bouncing fee by availing the option for rollovers, it is very important for you to keep in mind that you will still have to pay interest at an extremely high rate for the extended period of time. If you do the calculations, you can easily realize that just a single rollover or renewal can make your overall outstanding debt balance just double or triple or even more of the actual principal amount of money you had initially borrowed.

Borrowing Check Cash Advance On A Regular Basis

A vast majority of borrowers end up borrowing cash advance checks on a regular basis; they usually feel tempted to borrow it just because it gives them instant cash, which sounds like a wonderful temporary solution. But, these borrowers eventually end up getting trapped into a permanent debt problem. Such practices create a vicious cycle of payday debt. Therefore, you are strongly recommended to borrow these types of payday loans only if there is no better alternative available and only if you are sure that you can practically afford to repay it in a timely manner.

The attractive features that are often advertised about cash advance checks include fast approval of loan, easy application process, no or every little paperwork, quick access to the borrowed money, no credit checking, no faxing of documents and other things like that. But, if you consider the risk factors (as explained above) associated with these loans, you will never find these features attractive anymore.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?