Are you struggling to keep up with the sudden rise in medical expenses, unreasonable car repair bills or late fees on credit card bills? Financial crunch nowadays is quite a common problem. Payday cash advances might just be the solution you need. Two things you need to keep in mind though. First, payday loans are for relatively smaller amounts and second, it generally doesn’t have long payback duration. People at times are hesitant of applying for a payday loan because they don’t understand the process and the features it provides. Are you on that list? Let’s brush up the why’s and how’s then, through a FAQ format.
What exactly are payday loans?
To put it very clearly these are unsecured quick cash advances that you can use while experiencing temporary financial roadblocks. The payback terms are regulated by a certain annual percentage rate (APR) to prevent lenders from extracting exorbitant interest rates from loan applications. Don’t sweat over the word unsecured. Payday cash advances are often termed as unsecured cash advances because repayment terms are not linked with borrower’s paycheck although it requires the consumers to have a previous payroll or employment detail.
When do you apply for payday loans?
The answer to this question depends entirely on your needs and decision. Primarily, payday cash advances are for small amounts ranging from a few hundred bucks to a few thousands. It is important to note that application of payday loan is advised only for a brief financial shortage. Long term benefits might be availed only when you decide to activate the “roll it over” option. This feature enables you to avail the benefits of the payday loan for longer periods but the payback amount will continue to accumulate at the same interest rate.
What expense can you expect?
Payday cash advances are known to be quite expensive considering the APR levied. Though the APR depends on the concerned state or the location where the transaction is taking place but it is reported that usually you have to pay an APR of over 40% on the loan amount. This is another good reason why payday loans are only recommended for short term usage.
How to apply and obtain the funds?
Let’s look at both the options available, online and in store that is.
Online: Well, this starts with a few simple steps, filling up the required details, providing the information required which might include uploading a photograph and scanned signature to sign the contract online , and then just click the submit button or send the downloaded form to the email address provided. The funds applied will be transferred to your active bank account mentioned ideally within one business day. You might avail the online payback facility to refund the amount within the stipulated time.
In store: Once the offline application gets approved you can avail the funds immediately. But before you get hold of the funds you need to sign a check stating the full repayment amount and the fee requested by the lender. The lender will cash in the check only when you are ready to payback.
Make sure you do your math properly because if your plans to borrow are not chalked out properly the high APR levied payday loans might aggravate your fund shortage. Sort out the best in the business and choose wisely according to your needs and meticulously analyze the repayment options to optimize your fund utilization.