A paycheck advance is also known as a cash advance or a payday loan. It is a short-term loan available to individuals who are employed. People apply for a paycheck advance when faced with unexpected expenses during a pay period.
With our economy today, most people find themselves struggling to make ends meet. People have depleted their life savings to put them afloat and therefore no longer have funds to cater for their emergency situations. This is where paycheck advance comes in handy. Do not allow the economy to put you in a position where can’t make ends meet. If you need a loan to keep you on top of things, you may want to look into a paycheck advance. This is a simple, fast solution for many, rather than getting further in debt with a long-term loan that can end up being costly.
Reasons to apply for paycheck advance
1. Credit card payments – It is a requirement to pay our credit cards to keep them in good standing. If the card is due and paycheck is days away, consider applying for a paycheck advance to prevent the late charges.
2. Cell phone bill – Most of the today’s consumers rely heavily on their phones. Cellular phones enable us to carry on our with our daily activities efficiently. Hence, our phones getting disconnected due to non-payment is not a choice for the majority of us.
3. Car repairs – Just like cell phones, most consumers rely on their cars for their daily life. From working and shopping to running errands and picking up the kids from school, our cars are surely an important part of our everyday lives. If your vehicle needs repairs and your paycheck is still a week away, you may want to consider the practicality of a cash advance to pay for the car repairs.
4. Utility bills – Our water, electricity, gas and phone bills must be kept current so that we can maintain the service. If our utility bills are late, we run the chance of the service being cut off, which just isn’t an option for most families. Therefore, a paycheck advance can be used to cover the cost of the utility bills until we receive our next paycheck.
5. Rent payments – Failing to pay the rent on time can result in an eviction notice, something no one wants to face. Using the services of a cash advance to cover the cost your rent will protect your family from eviction and will prevent a blemish on your credit.
6. Emergencies – Individuals in emergency situations often need quick cash, whether for traveling expenses or medical expenses. It is, therefore, practical to apply for a money advance loan, as money can be quickly deposited into your bank account.
Things to put into consideration before applying for a paycheck advance
Direct lenders online which offer paycheck advances or payday loans have a short approval period. In some instances, an application can be approved in less than 20 minutes. This fast turnaround would provide an applicant quick financial relief. Money stresses offer nothing positive to one’s health. New customers are drawn to the opportunity to feel some financial relief. Past clients, who return when times are tough, know that the fast cash advance money is a convenient way to alleviate the stressful situation. There is a definite advantage to obtaining a short-term loan during a financial crunch.
To avoid falling into one of the “traps” so often described in the news, a person who applies for an online advance will want to have a plan (a backup one too) for the payoff. The high interest which accompanies the fast money is the troubling aspect for many. The first payoff includes the total of the loan plus fees. No interest is applied unless the loan is not entirely paid off. Once there is another payment date established, and then a borrower needs to accept that the low-cost cash advance will now have additional costs applied. Any long-term payment plan carries interest. The rates connected to short-term loans used to be much higher than others, but with the financial troubles of late nationwide, there are many credit card interest rates which are similar. These elevated levels are often charged to people with credit problems. High interest anywhere is a real incentive to pay the bill off quickly. It is a good strategy to have a backup plan to keep finances from being negatively affected by the loan.
Another positive approach before applying for a paycheck advance is to evaluate multiple lenders. Unless you personally or know someone who has worked with a cash advance loan lender before, shop around for a credible and responsible one. This is good practice with any financial decision. Shop for lenders with responsible professional practices and have stricter qualifications. A company that is willing to loan half your paycheck to you is not looking out for your best interests. Before starting this process, learn about how online cash advances are regulated in your state. Some states ban them altogether. If you stay in those countries, it may be more beneficial to you to find a different option for fast cash. Obtaining a loan from a lender willing to loan against state regulations is not to be trusted. If the company is prepared to skirt the rules on this issue, should make you wonder what else they are willing to do behind the scenes.