Fast Cash Personal Loans: Payday Advances Explained

An emergency expense could lead you to consider a fast cash personal loan.  Most financial advisors actually advise people not to use these kinds of personal loans, because they often carry hefty fees which could themselves lead you into even greater debt. But if you have absolutely no other choice, and you have a solid understanding of how payday advance loans work and know what to avoid, they can be a last-resort option for emergency cash.

A payday advance is exactly what it sounds like - the lender gives you a sum of money in advance, with the understanding that you will pay them back when you receive your next paycheck. The lender also charges a fee for its services - usually about $20-25 for ever $100 you borrow.  So, for example, if you are requesting a $500 loan, you may have to repay your lender $625. You must pay the entire balance - the sum you borrowed, and the fee - all at once when you receive your next paycheck.

STEP ONE: CHOOSE YOUR LENDER CAREFULLY

The safest way to apply for this kind of fast cash personal loan is to know all the details of your lender and what fees they will charge. Take some time to read each lenders' loan requirements carefully. If a lender does not clearly state what the fees will be for their loans, do not use that lender - they could surprise you with even more exorbitant fees than usual. Be absolutely certain you understand all the terms and conditions of your loan before you apply.

STEP TWO: BE SURE YOU CAN PAY BACK YOUR LOAN


Make certain that you will have enough money to repay both your loan and the total fees at the time the loan comes due. Most lenders will deduct this money directly from your bank account - and if you do not have enough money to cover the loan, they will charge you another fee for defaulting on the original loan. If you know that you will not have the full amount of the funds in your account when the loan comes due, some lenders will allow you to request an extension, but this act carries yet another fee, which will be added on to your original loan and the original fees.

STEP THREE: THE PAPERWORK

Carefully complete the paperwork for your loan, either a hard copy or online. Be sure you have all the information requested on the application - for example, most fast cash advance lenders require proof that you have a job. You may also have to provide information about your bank account and direct deposit transferring information, and you may have to sign a statement granting your lender permission to withdraw money from your bank account directly. You may also get to select how fast you want your loan.

If you are approved for a fast cash personal loan, your lender may deposit the money directly into your bank account as early as the next business day. Then, on the date the loan comes due, they will deduct the loan and their fee directly from your bank account. To be absolutely safe, watch your spending carefully over the next few days to ensure that when your loan comes due, you will have the funds available in your account.

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