By financen | July 6, 2008 - 4:09 am - Posted in Payday Loan

Payday loans are cash advances on your salary. People avail such cash advance loans during dire emergencies and the loan approval is instant. It requires little or no documentation or credit checks.

  • Cash advance loans have its positive and negative aspects. They are as follows:

1) Anyone can avail a cash advance loan. These types of loans are not based on credit reports or scores. Even if you have a bad credit, it is easier to get an online cash advance loan.

2) Cash advance loans help you cover the emergencies like unforeseen car repairs, a house leak during a storm, a car break down, or a sudden accident or illness.

3) Cash advance loans can be applied over the phone or even online.

4) Cash advance loans can be approved instantly and the money will be available to you within 24 hours.

5) A cash advance loan is immediate cash fluidity but ensure that the full amount is returned to the lender on salary day and not just 25%. Often rollovers
mean that you will be paying financing fees time and again.

6) Cost of cash advance loans is very steep. Borrowers will pay almost $15 for every $100 borrowed.

7) Cash advance loans come at very high APR. It can be as high as 500% and that too for the money borrowed for just 15 odd days.

8 ) If you are rolling your cash advance loan, it will lead to high interest payments which will amount to much more than the amount you actually borrowed.

9) While applying for cash advance loans, it is very important to read the terms and conditions thoroughly. Often people overlook the terms and conditions on the fine print and this leads to the borrower forking out much more than he bargained for.

10) Cash advance loans have limitations and only small amounts starting from $100 to $1000 can be borrowed.

As a borrower, you must make sure that you are not paying too much on interests alone on the principal amount. It is always suggested to take a loan from a reputed and established financial institution. Don’t sign the documents without reading the terms and conditions. Ensure that the stop- gap loan is paid back in full on payday.

This entry was posted on Sunday, July 6th, 2008 at 4:09 am and is filed under Payday Loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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