Payday loan
  • A Complete overview

    From various surveys, it is seen that the multitude of customers taking payday loan as well as payday lending companies are increasing constantly. If you are a person taking the payday loan for the first time or want to gather information regarding payday loan, then this article will be of great help to you.

    Definition of payday loan

    Payday loan is a very short term loan. Generally the term is 1-2 weeks. There are other names of payday loan like - "Cash Advance", "Pay check loan", "Check loans", and "Payroll advance loans". After you get your pay check, the loan is to be paid back. If you cannot repay the loan amount plus lender's charges for payday loan on your payday, you can rollover the loan amount by paying extra fees to the loan provider plus you have to pay the interest along with for the rollover period. So, payday loan can be termed a "Loan Sharking".

    Necessity of payday loan

    By the end of the month, you may deal with some issues in keeping some urgent family expenses like paying off your Medical Bills, Phone Bills, and Electric Bills, House Rent or some other utility bills. These things usually happen when you fail to maintain a proper budget at the time of getting your pay checks or not keeping your expenses up to your income limit. Hence in order to meet such urgent expenses you need a payday loan.

    Payday loan companies

    There are so many providers who are promoting check cashing facilities online. Besides some banks and other financial institutions also provides you with a payday loan. You can apply online for a payday loan or you can visit physically to an institution to avail a payday loan.

Conditions to be satisfied to get an instant payday loan

The criterions of different payday loan companies are


You must have a job or there should be a regular source of income.

You should have a Checking A/c in a bank.

You should be an US citizen.

You should be at least 18 years of age.

Your monthly income should be at least $1000 Per Month.

Best application time of payday loan

If you apply for the loan from Monday to Thursday, you will get the loan on the next working day, i.e. Tuesday to Friday. If you apply for the loan on Friday, then you will get the loan on the next Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.

So the best time to apply for the loan is Monday to Thursday

Cash Advance Credit Cards: You Should Know About These Costs

While cash advance credit cards allow you to use part of your credit line to withdraw cash, there are a number of fees and fine print issues that must be considered before proceeding with a cash advance. Getting a cash advance from your credit card is easier than ever. However, one must be aware of the expenses associated with taking a cash advance before inserting their credit card into an ATM. While there are a limited amounted of credit cards that offer 0% cash advances for 1 year, most charge much higher interest rates on cash advances than they do on regular purchases.

A Cash Advance Fee

First off, there is a 99% chance of being charged a cash advance fee. Of the over 70 credit cards covered on Credit Card Depot, I could not find a single card that charged less than a 2.9% cash advance fee. Some cards even impose a $10 minimum fee. That means the cash advance fee can be 5-10% if you are only taking $100 or $200. Taking out less than $300, therefore, can be expensive.

Now, unless you take advantage of a 0% interest cash advance offer, you will also be charged a higher interest rate on the money you take out. For example, a very popular credit card with a variable 11.24% interest rate on purchases charges 23.49% on cash advances. This is not the exception, but the rule. Regardless of your credit, you will likely be charged 23% or higher on your cash advance balance.


Repay Your Credit Card

There's another sticky issue here. When you repay your credit card, your dollars go first to the balance that is being charged the lowest interest rate. For example, let's say you have a $2000 balance from purchases at 11.24% and a $1000 balance from cash advances at 23.49%. Until you have paid off the $2000 from purchases, you will continue to pay the higher interest rate on your cash advance. This is an unfortunate trap many cash advance users fall into.

Now, there are ways to limit the expense of taking a cash advance from your credit card. First, you can find offers that will give you a 0% interest rate for 1 year. At the end of that year, you can pay the cash advance balance in full or, if your credit is good enough, transfer that balance to a 0% balance transfer credit card. However, if you do not repay the cash advance, you will get hit with an interest rate in the mid to high 20% range. Also, you may be charged a balance transfer fee.


Your Cash Advance

If you have a balance on your current credit card, it is probably better to get a new credit card for your cash advance to avoid the messy interest rate situation having purchases and cash advances on the same card creates. Also, if you cannot repay the cash advance in a short period of time, you could transfer the balance to your current credit card and pay a much lower interest rate on your cash advance.

Taking a cash advance

Taking a cash advance from your credit card does cost money. However, the wise use of a cash advance can limit the astronomical expense taking a cash advance often entails. By taking interest rates, cash advance fees, and the fact that paying off a cash advance on a credit card with a balance is not that easy into consideration, one can effectively use a cash advance credit card without falling prey to the traps in your credit card's fine print.

Cash Advance FAQ's

As with any kind of loan, getting a cash advance also requires that you arm yourself with all the important information you need to know so that you can decide on whether you can effectively manage and repay the loan. This is because jumping on the opportunity to get a cash advance without carefully considering all the pros and cons in getting the loan can lead to future problems especially with regard to the repayment of the loan. Given this, you need to take the necessary steps to make sure that you are well informed about the cash advance you plan to get. The good news is that there are a number of sources from which you can get the information that you need with regard to cash advances, a good example of which is the Internet.

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FAQ

In the same way that the web sites of lenders are the best sources of cash advances, these pages also serve as a rich source of information with regard to cash advances. This is because most if not all of these web sites have a Frequently Asked Questions page, which contains very helpful information on cash advances. Among the information that is put on these FAQ pages, one of the most common topics is on how cash advance loans work, which can be very helpful to borrowers, as they can have a gauge of what getting a cash advance entails. In addition to this, people are also provided with information on how to apply for a cash advance and on the requirements that they need to submit to qualify for a cash advance.

More importantly, people are provided with information with regard to the advantages and the disadvantages that come with getting a cash advance. This is also very important because this kind of information can help people properly weigh the pros and cons of getting a cash advance so that they can make an informed decision whether to get a cash advance or not.

If you are thinking of getting a cash advance loan, there are a number of considerations that you need to look into before you fill out that application form, which can help you assess if you can effectively manage and repay the loan. Doing so would involve arming yourself with the necessary information with regard to cash advances, which you can easily do by accessing the FAQ pages on the web sites of different lenders.