Need cash fast? If you need to prevent a bounced check fee that can damage your credit or if you’re looking to avoid late fees, a cash advance can get you the money you need to handle any type of financial emergency. Payday loans, also called cash advance loans, are a quick and easy way to borrow against your income to secure the cash you need right away. As with any type of loan, there are fees involved. Here’s what you need to know about payday loans.
How do payday loans work?
Consumers can take advantage of payday loans in 37 states. Essentially, these loans let employees take a cash advance from their upcoming paycheck. Usually, the loan amount is small—around a few hundred dollars—but some loans go up to $500.
When you visit your local payday loan store, you’ll write a personal check to the business. The check will include the amount of the loan plus any fees the business charges. Fees are limited by law in each state and range from $15 to $30 for every $100 borrowed. Keep in mind that your income will limit the amount you can borrow at any given time, and this rule is designed to prevent the cycle of debt and give borrowers a chance to pay back the loan by the time it’s due.
Many people appreciate the ease of getting cash with payday loans, since the money is delivered to your bank account right away. You can then use that cash for any reason—in most cases, people use cash advances to pay outstanding bills.
How do you repay the loan?
Typically, loan terms are two to four weeks. If you pay the entire amount back during that time, you’ve covered the debt and can walk away. If you can’t pay the entire amount, you may be able to extend the loan depending on the company you’re working with. It helps to understand the repayment period before you agree to a loan, since rolling over a debt for a longer period of time will usually cost you more money.
What are the benefits of payday loans?
While many people don’t enjoy paying loan fees, there are situations where you need cash fast. Payday loans helps people in a variety of tough situations get the cash they need without a lot of hassle. Some of the benefits include:
- Speed: All borrowers need to do is fill out an application and receive approval. The process usually takes only a few minutes, and most lenders offer a one-hour guarantee for receiving money following approval.
- Convenience: Most payday loan stores are open outside regular banking hours, helping you get the cash you need at any time.
- Secure: The payday loan process keeps your personal and banking information completely secure, and institutions can’t give it to other companies.
If you’re in need of a cash advance for whatever reason, choose your lending provider carefully. You need to choose a reputable company that offers great rates and adheres to industry best practices, including providing consumer protections. Cash-N-Go Auto Title Loans of Phoenix is the name to call for auto title loans, ensuring a quick and smooth process for every customer. Reach out or visit us today to get the cash you need.
Categorised in: Money Tips