Payday Advance - Borrow With Caution

By: Tim Kelly

Often, people tend to take out Payday Advance, when they are unable to find a timely help from elsewhere. These may be easier borrowings for salaried people, but there are some traps as well and chances of incurring a debt are higher, if you have not prepared well for the loan.

Main attraction and advantage is that the salaried people get the loan amount within 24 hours. This means that they can put the loan for some urgent use like paying off a medical bill or avoiding a late payment. The borrowers must have a job, with a fixed monthly salary cheque. They must also have an active bank checking account.

The loan will depend on your monthly salary. Usually, the loan ranges from ?100 to ?1500. You can permit the lenders to withdraw the loan amount from your checking account on due date of getting the next paycheqe. The approval comes for two weeks. You have the rollover option, which allows for extending the repayment up to a month.

The pitfall is that payday advance carry exorbitant interest rate. Often, the rate goes up to 30 percent, meaning that you will pay ?30 on borrowing ?100. Clearly, the greater amount of loan makes the interest payments sometimes highly burdensome for the salaried people. The borrowers are at more disadvantages, when they extend the repayment. Each extension carries enhanced interest rates.

To combat the high rates, make sure to compare different such offers. Some lenders may offer you the loan at comparatively lower rate to win you as customer.

Bad credit history is hardly a hurdle. Payday advance approval comes without any credit checks. This means that you can shortly repair your credit rating, if you repay the loan at the first opportunity, through next paycheqe and do not extend it.

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