A small loan that necessarily falls below US $1000 and fills in the short term cash flow gap for an individual is termed as simply cash advance. It provides freedom from lengthy paperwork, credit checks and a long waiting period to obtain bank approval. Typically extended over a 2-3 week period, the terms allow borrowers to pay back the cash advance on his next payday. To qualify for the program, you just need to be an adult US resident with a regular source of income and a checking account. However, before you join the bandwagon, let glance over some loan facts in detail.



Obtaining Payday Loans

These program can be obtained online or from various checking and lending institutions. Apply now and the loan lands up direct in your savings account. But before you get access, you need to write a check worth the amount borrowed, plus the fees in favour of the lender. The lender waits till your next payday and settles his account on your pay date.

Using Payday Loan

These programs are best suited for situations like:

End of month and you are short of cash to pay utility bills,

Unplanned emergency repair demands a huge cut in your pocket,

Sickness or death befalls, leaving you cash strapped, etc.

However, beware of the deadly addiction. If you have started funding your daily expenses like groceries through these cash advances, you are infected.

Benefits

The beauty of these programs lies in the operational ease, with which they can be obtained. The features that attribute a convenience quotient to these loans are as follows:

1. One Hour Facility You have the relevant papers, you get the loan within an hour without credit checks.

2. Short And Sweet Loan Terms: Unlike other traditional loans, you do not have to pay the interest rate every month, as these loans are for the shorter period. Therefore, you can pay back when you have your next paycheck.

Cost Of Payday Loan

A US $100 cash till instant loans will cost anywhere between US $15-30. Payment after the due date calls for a surcharge. So cost of a US $100 loan goes up to US $60 after 3 renewals. Generally, the annual percentage return (APR) falls between 350-650%, claim Federal Trade Commission (FTC) and the Consumer Federation of America (CFA). In certain cases, however, APR can touch a high of 780%.