A payday advance is actually a loan that is issued for short-term. Payday advances are beneficial for those times when you are experiencing financial difficulties, but need money for an emergency, such as paying the power bill to avoid disconnection. In many situations, the interest charged for payday advances are less than what you may have to pay in late fees and overdraft fees at your bank. However, there are some things you should keep in mind when applying for payday advances.
Where Do You Apply For Payday Advances?
There are a number of payday advance providers you can choose from, either online or in-person. If you choose to apply online the money is typically deposited into your bank account and on the repayment due date, the lender will deduct the principle plus interest from your bank account. If you apply in-person you are usually given a check that can be cashed either on the premises or taken your bank and you are responsible for going to the lender in-person to make the payments.
Paying Back the Loan
It is extremely important that you adhere to the payback time, which is usually in about two weeks, depending on when you receive your paycheck. If for some reason you are unable to repay the loan in full on the due date, it is essential that you contact the lender immediately to let them know about your situation. In many situations, the lender will work with by rolling over your loan. Keep in mind that if you rollover the loan, you be required to pay a fee, often times it is at the time you sign the refinancing contract. It is extremely important to remember that if you received the payday advance through an online lender, your payments will be taken directly out of your bank account, so if you do not have the funds in the account, you may end up paying a fee to the lender as well as fees to the bank.
Only Borrow What You Need
One of the most important things you need to keep in mind when applying for a payday advance is to only borrow what you need. For example, if you only need $500, but were approved for up to $700, only borrow the amount you need. It may be tempting to borrow the additional money, but it will increase your interest rates and your repayment amount will be higher. With this in mind, make sure you will have enough funds to repay the loan when it is due.
Do Your Research
When deciding to take out a payday advance, make sure you take into account that there are numerous of lenders to choose from. To ensure you are getting the best rates, take your time when choosing and compare the interest rates of at least three different lenders. It may take you a little extra time, but it could save you a lot on the fees later on.
Applying for a payday advance is ideal for those who are in an emergency situation and do not currently have the funds necessary, but it is a serious matter; you are actually taking out a loan. If you make the decision without fully considering all of your options, you may get into a serious problem. Keep in mind that payday advances may not be the right choice for you if you know that you won't have enough funds to repay the loan. To avoid the risk of extensive penalties, fees and late charges, you must pay the principle, interest and additional fees on time. For more information about payday loans, contact a business such as http://paydayexpresscashadvance.com/.