Payday Loans, or cash advance loans, are exactly as they sound, advances on your paycheck. While many bosses will allow you to "get your paycheck early", not all bosses are that generous or willing to take that much of a risk with their employees. So in times of need, millions of consumers turn to payday Loans to bridge the gap until the next pay check or to pay for an unexpected expense.
There thousands of websites and retail locations that offer pay day loans and the loans can be had in a little as 24 hours, thus the nickname, "fast cash". Pay day loans are easy to get and require little more than an established bank account and a job. There are no credit checks or background checks but it is helpful to have worked at the same company for over 6 months. After filling out the forms either in a retail location or at a website, you can have your money, from $100 to $1,000 in as little as 24 hours.
Getting a cash advance sounds like a great idea to get cash when you are a little short but buyer beware. There are fee on these short term loans that can range from $15 to $100 and can have APRs that are in excess of 1,000%. Now that you have the cash, you generally have 30 days to pay the loans back or you can simply pay it back when you get your next paycheck. As there are no credit checks on pay day loans they are pretty risky loans for the lender so there are very high interest rates and if you can’t, or don’t want to, pay the loan back in 30 days you can roll it over to a longer term loan but then the interest starts to compound.
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So pay day loans are a great way to bridge the gap but there are pitfalls. The Truth in Lending Act will make sure that the lender provides you with all the necessary loan information but you must ask for it and you must read the document to find out the particulars of your loan. Take the time to look over the loan documents before signing on the dotted line.
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