A payday advance, often called a payday loan, is an advance on future earnings, not a loan. Consumers needing quick cash until payday can get an advance on their next paycheck for emergency expenses. A good credit score isn’t usually necessary to get an advance; a steady job and regular paycheck are essential. People without credit cards or good credit scores often find getting a bank loan difficult; an advance of their paycheck is frequently the only way to get the cash they need quickly.
Since it’s easy to get advances without having good credit, some consumers find it tempting to get loans for superfluous expenses. Advances for emergency expenses can be useful financials tools but should never be used for buying items that could wait until the cash is available.
Examples of useful of when to ask for cash before payday are avoiding a utility shut-off and re-connection fee, avoiding a late fee or to repair a vehicle that is needed to get back and forth to work. In these cases, a cash advance may save an individual money if the advance cost less that a re-connection fee or late fee. Used responsibly, payday advances can help prevent an unexpected expense from turning into a major problem.
A payday advance for extravagant expenses, such as a fancy restaurant meal or a new designer outfit, is a fast track to debt. Loans are very easy to obtain online; in five minutes a qualified worker can apply to get cash wired directly to his or her bank account in less than 24 hours. If someone need the money right away to visit a dentist or buy medicine, the speed and ease of paycheck advances is very helpful. However, impulsive consumers can get into financial trouble by taking out easy advances to buy items when they could have just waited until payday.
As with any online financial product, getting cash from future earnings is convenient for responsible consumers and bad for irresponsible consumers. Used occasionally and paid off in full with the person’s next paycheck, a payday advance is the equivalent of taking a cash advance from a credit card; expensive but necessary sometimes. Anyone who can’t pay the loan in full with their next paycheck will find advances an expensive proposition.
Read the terms and conditions of any offers carefully to avoid any surprises. Knowledgeable, informed borrowers find these loans the modern way to get cash fast without the hassles of borrowing from the bank or the embarrassment of asking friends or family members for a loan. Ignore the fine print, or use the advance for non-emergency purchases, and the advance becomes an expensive debt that’s difficult to pay off.