Cash advances, commonly known as payday loans have a quick and understandable process. Amateurs who are in need of money and can’t cash enough credit card advances usually opt towards borrowing money from banks with a personal loan process. Whereas professionals who need money quickly and are comfortable with borrowing money from trusted organizations opt towards getting payday loans from state-licensed direct lenders.
They are so-named because of their reasonable amounts making it so you can pay back the money you’ve borrowed when you receive your next paycheck. The reason these loans are flamed on the internet is because of borrowers building up interest on their loans by not paying them back when they should have, resulting in them being in more debt than they were originally in.
The idea of payday loans was designed to be quick so anyone who has a job can easily qualify for a loan in case they find themselves in an emergency. Someone taking up a payday loan offer will feel like they’re just borrowing money from their future selves with their upcoming paychecks. A payday loan is also called a deferred deposit loan, a post-dated check loan, or check advance loans so you don’t have to be confused when being offered any one to help you out.
The Approval Process:
Living in a lifestyle that solely depends on a paycheck to paycheck can have devastating results. According to a survey done last year, “Over 54.49% of all Americans don’t have a savings account.” These Americans can be left to deal with devastating consequences after finding themselves in an emergency that requires more cash than they have on hand. Individuals like these are urged to get a payday loan from direct lenders instead of banks as that process can last weeks.
Getting a payday loan is easier as the approval process takes barely 15 minutes. The borrower will be required to write a check for the loan amount and a lending fee as well. This fee will be fixed and can only be a maximum of 17% of the loan amount. These loans can be extended for a few weeks so the individual borrowing the money doesn’t end up in more debt because of the high interests. The lender has every right to withdraw from the borrower’s account if the loan isn’t paid within the due date.
The Risk Payday Loans Carry With Them:
People who take on payday loans can run into all kinds of financial troubles if they’re unable to pay off the loan on the first due date. Whenever the loan is extended, more and more interest rate is added and a $100 loan can end up becoming a $400 loan. A $15 fee would have a 400% nominal increase on the interest rate annually.
These loans are accessible to anyone and everyone, no matter what kind of credit they have. A legitimate state-licensed direct lender like Net Pay Advance won’t even run a credit check. Whereas payday loan lenders who are not licensed will most likely scam you and share your personal information around which can leave you in quite a pickle. This is why it’s better to opt for a state-licensed direct lender when looking to get a payday loan.
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