Unfortunately, this
isn't always the case. There are things that pop up in life that we cannot
control or cannot schedule to happen. Something could go wrong with your car,
your son could fall and break his arm, a pipe bursts. Whatever the case may be,
these are unexpected events that occur without any warning and are not in the
budget. A few people have the option to go to their banks or lending companies
and garner a small loan. Sometimes only a few hundred dollars are needed and
getting a loan for thousands is out of the question. These are the times that
may warrant a payday cash advance. A reason that these payday cash advances are
popular and sometimes an only option is because the majority of lenders do not
do credit checks.
In order to obtain a
payday cash advance you need to be over 18 years of age, have a credit card or
checking account and a steady paycheck. Also, most places require that you make
at least $1,000 a month. Let's say that you need a loan for $300. You would
need to write a postdated check. The date is usually determined depending upon
your pay schedule. The amount of the check would be the sum of the amount
borrowed and the interest and the principle on that amount.
Be prepared to pay a
high interest rate and principle on a payday cash advance. Also, you will need
to be prepared to pay back this entire amount on your next payday. Because of
this reason, it is advisable to get as small of a loan as possible so as not to
put yourself too far behind with your next paycheck.
Sometimes there are
circumstances where you cannot get to an establishment and in those situations
an online payday cash advance is an option. In these cases, the amount you need
to borrow will be electronically transferred into your bank account from the lender.
Of course, there are steps that are taken to verify all of the information that
you are providing. The lender would then have to be able to electronically
retrieve the amount owed from your checking account on your next payday. This
means that you would have to deposit that amount into your account by the date
of the postdated check. Some lenders may want to deposit the postdated check
that you gave them at the time of receiving the loan the day before your
payday. This will ensure that the lender will get your payment. If you are like
me and have trouble remembering things that are out of your normal routine, you
can ask the lender to fax you a copy of the postdated check for your records
and to act as a reminder.
Please keep in mind
that payday cash advances need to be made only in the most dire of situations
and are not an answer to your financial problems. In fact, taking too many
advances has the potential to put you in even more debt than ever before. By
paying the extremely high interest rates and principles, you could easily fall
into a situation where your paycheck would not cover the amount of the loan and
interest. So try not to take advances too often.
Fortunately there are
alternatives to the payday cash advances. These are often overlooked or ignored
all together, but you can try to get a small loan from a friend or family
member or sometimes your employer. In these cases, you can offer to pay
interest, but I am sure that it wouldn't be near the rate from a lender. You
can also talk to your bank about overdraft, where the bank will cover your
account if you go below the amount you have in it. It would be wise to look
into these options first and use a payday cash advance as a last resort.