There are many online
payday loan companies which claim to offer instant no fax cash loans with
little or no credit required. There are pro's and con's to the borrowing money this
way. This article is about things to remember and realize when you apply for or
receive a cash advance loan.
First things first. To
define what a payday advance loan really is, lets look in to how they work.
A payday is basically
the same as you taking a post dated check to pawn shop. The down side to this
is the interest you are going to pay on the money that you borrow. Things to
remember when you get or apply for payday or cash advance loans:
#1. You are going to
have to pay the loan back. I mean come one, this is a gimme.
#2. You are going to
pay them back more money than you borrowed. Fees vary from lender to lender and
from state to state.
#3. You can extend
your loan payments as many times as your state will allow. What this means is
that your minimum payment will simply be applied to the interest and not the
principal (the amount you borrowed)
#4. No all payday loan
companies are licensed lenders. These types of loans are now regulated by each
state.
#5. Beware of SPAM
sites and other identity theft websites that may steal your personal
information. You should make sure that the lender is genuine and the best bet
is to go through a direct lender or bank to get a payday or cash advance loan.
How payday and cash
advance loans work:
Step 1: You apply with
a lender to borrow between $300 to $1500 depending on your states
maximum.
Note * Your credit score will not be the "end all" factor in you being approved for a cash advance loan.
Note * Your credit score will not be the "end all" factor in you being approved for a cash advance loan.
Step 2: The lender
will ask you to fill out their online loan application form asking for your
personal detailed information. For example, your bank account routing number
and account number, (this is the check you will be pawning) as well as your
social security number and other information that you would not want to fall in
to the wrong hands.
Step 3: After you have
been approved for your cash advance; keep in mind the amount they offer you may
be less or greater than the amount you have applied for, your funds are usually
deposited in to your bank account within 24 hours.
Please remember that a
payday loan is a rather expensive line of credit. Much like taking something to
the pawn shop. You are going to pay more to get your item back; in this case a
post dated check. This is how the industry makes money and thrives.
Be realistic when you
ask borrow money using payday loans. Do not borrow more than you can afford to
pay back, even if they offer you more money.
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