What to Know About Payday Advances

06-May-2008

A payday advance is another name for a payday loan. This is a service provided by a third party which offers a short-term, cash loan based upon your next pay packet. The payday advance is becoming more and more popular probably because of the multitude of online payday advance services, which must be checked thoroughly for reputation. Many companies boast that you will have your payday advance within 24 hours. In addition, much of the population is shut out of traditional loans from banks due to the credit risks that they pose to most financial institutions, and so a payday advance is seemingly its only option.

If you choose to pursue a payday advance, this is basically how it works. Again, you can choose to transact online or in an actual ?store.?  You will be asked for basic, yet invasive, personal information such as: names, birthday, e-mail and physical addresses, insurance numbers, home and mobile phone numbers, employer?s name and phone number, source of income, frequency of pay, pay dates, monthly salary amount, and bank name and account. In addition, you must have a bank account with a valid debit card, get paid via direct deposit, and be over 18 years old to be eligible. Once the company has your information, they will do a quick search. If they find that your information to be correct, you will most likely be approved.

Remember that you can only borrow a small amount, as it must be able to be repaid in full, with the charges and fees, with your next paycheck. Make sure you understand all of the charges involved and timing of those fees before agreeing to the payday advance. And understand exactly how and when the payday advance will be repaid. The proliferation of payday advance services and the fact that there is a push to protect the clients of such companies leads one to caution. A payday advance really should be a last option. Budgeting and living within those guidelines is a much safer plan, although possibly more uncomfortable in the short-term.