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.
If you are a person living paycheck to paycheck and have an emergency or an unexpected expense occurs, there are options to help you out. You can borrow the money from friends or family, overdraft your account if your bank allows that, or get a payday cash advance.