You’ve already seen the ads a hundred times. They refer to payday loans - a quick and easy solution to an unexpected cash crunch. Customers often choose payday advances to cover their small, unexpected expenses while avoiding any costly bounced check fees and late payment penalties.
So, what is a Payday Loan? A payday loan, paycheck advance, cash advance, or quick cash loan is a small, short-term loan (typically up to $1,500). These are often done without a credit check, and they attempt to bridge the borrower’s cash flow gap between pay checks.
Usually the loan is given in cash and secured by a post-dated check that includes the original loan principal and whatever interest is negotiated. The ‘maturity’ date usually coincides with the borrower’s next pay day. On the maturity date the lender processes the check as usual, or sometimes through electronic withdrawal from the borrower’s checking account.
Payday lenders typically operate small stores or franchises, but recently a number of online ‘Virtual’ payday loan stores have been opening up. These make it easier than ever to obtain cash in times of crisis.
Once you’re approved for your cash advance, money can easily be electronically deposited directly into your checking or savings account. With flexible payment options and discrete service, you can get the cash you need very quickly. It’s easy to do and can save you from more serious problems until you get things straightened out again.