Payday Loans and
Cash Advance Consumer Guide
The payday loan and cash advance
consumer resource
Payday Loan and Cash Advance Basic Info:
Payday loans: what is
a payday loan or cash advance?
A payday loan or cash
advance is a cash loan provided over a relatively short period of time,
typically to help borrowers with their cash-flow until their next
payday.
These payday loans or cash advances are unsecured, meaning that
customers do not provide collateral. Repayment on payday loans and cash
advances are generally payable on the borrower's next payday, typically
between 4 and 16 days. On this web site, the terms 'payday loans' and
'cash advance' refer to the same thing.
Payday loan and cash
advance requirements: who qualifies for payday loans and cash advances?
In order to qualify for a payday loan
or cash advance, you must have a job or receive regular income. You
also must be at least 18 years of age and a U.S. citizen or legal resident
in order to obtain a payday loan and cash advance. Most payday loan and
cash advance companies
require that you also have a
checking or savings account. Each payday loan and cash advance company
may also have their own additional requirements.
How much cash can
payday loans or cash advances provide?
Although the amount varies from state
to state and from company to company, most payday loans and cash
advances are typically between $100 and $1500, with $100 - $500 being
the most common amount.
Is a credit check
required for payday loans and cash advances?
Most payday loan and cash advance
companies do not require a credit check in order to qualify for payday
loans and cash advances. For many people with less than perfect credit
histories, this is one of the main advantages of a payday loan or cash
advance.
How
long does it take to get a payday loan or cash advance?
In most cases, payday loans and cash
advances can be approved in an hour or in a few hours. That means that
the money can often be transferred into the customer's bank account
the same day or the next morning.
How do I receive the
cash once my payday loan or cash advance is approved?
Once your payday loan or cash advance
is approved, your money will be direct deposited into your bank account.
Must I have a checking
account in order to get a payday loan or cash advance?
Most payday loan and cash advance
companies, especially those online, require customers to have a bank account.
Is
there a fee to apply for a payday loan or cash advance?
There are no fees whatsoever to apply
for payday loans or cash advances. We recommend that customers never agree
to pay an application fee for payday loans or cash advances. Payday loan
and cash advance companies make their profit from the interest charged
once you are approved.
Why
is there some opposition to payday loans and cash advance loans?
Payday loans and cash advance loans
are short-term, unsecured loans requiring no credit checks in most
cases. As a result, payday loans and cash advances have a much higher
interest rate than most other loans, in some cases as high as 500% per
year. Payday loan and cash advance companies justify the higher interest
rates by highlighting the financial risks they face and the service they
provide borrowers. Opponents of payday loan and cash advance companies
claim that the high interest rates are tantamount to loan sharking and
exploitation. In addition to that, some payday loan and cash advance
companies have resorted to aggressive and, sometimes, illegal, measures
to ensure repayment of their loans, leading to many consumer complaints.
Proponents counter with the argument that payday loan and cash advance
companies are providing consumers with valuable service that traditional
banks and other lenders have neglected. They also say that only some
payday loan companies resort to illegal and unethical practices, with
most others abiding by the law and treating customers fairly. |
