Tuesday, December 1, 2009

Should you get pay day cash advances?

These days you can breathe a sigh of relief with a pay day cash advance. There is a lot that you can do with it. Before you even decide to apply for one though, you have to find out first if you should really get one.

What it’s For

A pay day cash advance is essentially a loan. A lender will advance a certain amount if you pledge to pay your loan with your next pay. In other words the pay check following your loan is considered your collateral. This arrangement highlights the fact that pay advances are small, short term loans. As such, you also need to prepare yourself for high interest rates.

Loans of this type are often also called instant cash advances. This is because loan applications can be granted in as short as one to twenty-four hours. Cash can be deposited to your account right on the same day you asked for it. Simply put, this is the kind of loan you should make if you have unexpected expenses or emergency situations that don’t fit into your current weekly budget.

Where You Can Get One

There are now a lot of lenders who offer instant cash advances. You can choose the traditional method and choose a lender with an actual office near your area. Many borrowers however simply opt for the more convenient alternative which is to borrow online. Lenders or companies who match borrowers with lenders let you fill up online forms to apply for a pay day cash advance. After submitting a form, you can expect to be called for the confirmation of your application data.

Meeting Qualifications

Just because applications are quickly processed, it doesn’t mean that there are no set qualifications. You have to meet certain lender requirements to be able to get a pay day cash advance. Most of these requirements however are very basic and can easily be complied with. Many lenders do not even ask documents to be sent or faxed to them for approval.

Lenders do not all have the same set of requirements. Examples of general lender requirements for instant cash advances include citizenship, employment, salary limits and a direct deposit pay account. Many lenders do not require good credit scores.

Problems with Advances

Some lenders may ask for an advanced check so they can collect payment. Others however may simply ask you to allow them to deduct directly from your account on the appointed day of payment. This will ensure that you are least likely to default on payment.

Problems can arise though if you make more than one pay day cash advance. Remember that aside from having to pay your loans, you also have your regular budget to worry over. The key is to never make multiple loans at all. If you need more cash than instant cash advances can provide, you should consider making a long term loan instead.

A pay day cash advance can help save the day. Bear in mind though that this is a loan that can only be good for you if you know when you should make them.

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