Payday Advance

A payday advance is a loan described by its title.  It is an advance until you get paid.  This is a short term loan.  It is usually held for only a week or two.  Usually, good credit is not required for a loan like this.  The way this loan is set up makes it difficult for the borrower to default on the loan.  The loan amount is usually very low.  With a payday advance loan you can borrow between $100 and $1000.

What are the Loan Terms?

The terms of a payday advance are simple.  The loan is a short term loan.  You can either take the loan out for 7 to 14 days or 14 to 21 days.  The loan will be deposited and withdrawn from your active bank account by the lender.  The borrower is only responsible for putting the money in the bank. The borrower will be responsible for repaying the loan as well as a loan fee.  The loan fee is based on the amount of the loan.  If the loan is for $100, the loan fee will be between $18 and $20.  If the loan is for $1000, the loan fee will be between $180 and $200.  The rest of the transaction is taken care of by the lender.  If, on the day that the loan is due, the money is not in your account, you will be given an extension.  With the extension, you will be getting another week to pay the loan but you will be required to pay another loan fee.  If after three extensions, you still have not paid your loan, you will be forced to pay penalties.  The penalties, like the loan fee, depend on the amount that the loan was for.  If the loan amount was up to $599, the fees.  Here is an ex ampl penalty would be $50.  If the loan was for $600 or higher, the penalty fee would be $100.  You would still be responsible for paying the loan e:

Callie  took out a loan for $1000.  She did not have the money in her account and used up all three of your extensions.  It is the fifth week of the loan and she finally has the money.  
 
$1000 - Amount of the loan
$200-   Loan fee
$200-   Extension fee 1st week
$200-   Extension fee 2nd week
$200-   Extension fee 3rd week
$200-   Extension fee 4th week
$100-   Penalty fee 4th week
$2100- Total amount due on loan

The $100 penalty fee would continue every week along with another loan fee until the loan was paid.

What are the Requirements of a Payday Advance?

There are a few requirements that borrowers must meet in order to qualify for the loan.  The borrower must be at least eighteen years of age or older.  The borrower must have a source of income of at least $1000 per month.  This income can come from wages from a job, Social Security, unemployment, temporary disability insurance, or child support.  There are also a few different sources of income that are not accepted.  Social Security that is in your child’s name or somebody else’s name and state welfare checks are not allowed.  It is required that whatever type of income you have, be directly deposited into your bank account.  Your bank account must have been open for more than ninety days.

How do I Apply for a Payday Advance?

Applying for a payday advance is rather simple.  The borrower should first go on the internet and research the payday advances to find the company with the lowest loan fee.  When they have found the best company, they should fill out the application form.  The first page of the form is the borrower’s information.  This includes their name, address, telephone number, social security number, and email address. You will also be required to enter all of you banking information and give the lender the names, addresses, and telephone number of three personal references.  The second page is the page with the loan options. You will choose the loan amount and the length of the loan. 

Once all this information has been entered, you will wait for the loan decision.  It usually takes about thirty seconds.  If you are looking for a larger loan of $500 to $1000, you will be required to make more money than someone asking for a loan of $100 to $400.  Once you have been approved for the loan, there will be pages to be printed.  One of the pages will have fax information. You are required to fax over a copy of your bank statement along with a voided check.  The second printed page is the loan agreement which must be signed and faxed over as well.

When will I get my Payday Advance?

When you receive your payday advance, depends on when you submit your loan application.  If your application is submitted and all of the necessary papers are faxed by 7:00pm EST or 4:00pm PST, the loan will be electronically deposited into your account the next day.  If it is submitted after the above-mentioned times, it may take an extra day.

How do I Repay my Payday Advance?

Paying your loan back is simple.  The lender does everything for you.  All the borrower must do  is make sure that the money is in the bank and the lender will electronically withdraw the money.