Payday Advance Options: Are They Right For You?
If you’re just trying to survive until your next paycheck goes to the bank, a payday advance may just be the boost to your bank account. Whether you are self-employed and going through a low season or waiting for a customer to pay a bill, you know that your company’s financial obligations depend on your customers paying for the goods and services you have provided. This can put you in a precarious financial position. Especially when you need that money to move on to the next job you have been hired for. In this type of situation, what are your options?
A payday advance is a short-term loan that offers temporary financial assistance when you don’t have the budget to cover your bills. A typical payday advance ranges from $ 100 to $ 1,000 and must be repaid when your next paycheck enters the bank. Lenders vary in the amounts and terms of their loans, but most do not require collateral because these types of loans are considered unsecured loans.
If you own your own business, you know the stakes when it comes to borrowing money. It is important that you never put the future of your business in a position where it could be compromised. However, it is an option when you need a little extra financial help. If your budget doesn’t support paying off a payday loan, then it’s best to find another way to overcome your budget crisis.
You can request an overnight payday advance from your home or office. It’s fast and convenient, saving you from having to drive around town or from bank to bank. It also saves you time from queuing or having to endure long approval times. You only need to provide basic information about yourself, your employment situation and your banking institution. While you won’t have to worry about your credit history because most payday lenders don’t manage your credit, you will need to have an active checking account with direct deposit of your paycheck. If you are a small business owner, you can provide your personal account information. You should never be charged money up front, and the lender you are applying with should provide you with the fees and interest to be charged before signing your loan.
You should also ask the lender, before signing any documents, what their policy is in case you cannot pay your loan in full on time. While most lenders will extend the terms of your loan and give you more time to pay, it can end up costing you quite a bit in the long run. Payday loans are intended to be short-term in nature and pay off quickly to avoid becoming expensive, long-term debt.
It is important to know that each state has different rules and regulations on loans and that it is the state that determines the loan amount and interest rates. There are some states that do not allow any type of payday loan, so it is vital that you ask the lender if it is legal to make loans in your particular state. It is not about finding a lender that is legal in the state you are in, but rather the state in which you actually live. There are offshore lenders, but they generally charge exceptionally high interest rates and fees and can be a bit of a hassle to work with.
While the payday loan industry has come under scrutiny in recent years, there are many honest and outspoken lenders who are really in business to help consumers in times of cash flow crises.
