What is a Payday Loan Advance?

Are you caught in a financial crunch? Do not worry as a payday loan advance can be the key to your sudden monetary problem. This loan is a temporary and hassle-free financing solution that allows you to take cash in advance for up to a maximum of four weeks. It has to be repaid by the next month’s payday. The loan can be extended against payment of extra charges for a maximum period of fifteen days. Generally it is deducted from the borrower’s bank account.These loans are the best option in times of sudden crisis. People often have recourse to this option in order to quickly borrow money. Borrowers must be employed for at least six months with the same employer to use this facility. They must possess a banking account through which the money will be paid. Payday lenders require identification and income proof. The borrower has to submit post-dated personal checks covering the borrowed amount and interest. Payday loans may come with a relatively high interest rate. Private lenders may charge some processing fee. Things to remember before taking a payday loan:

• Since you are in desperate need for money, you should be careful before choosing a lender. There are a number of payday lenders who give discounts on interest rates for first time borrowers.
• Since the cash is made available in the fastest possible time, some lenders charge high interest rates. So one should opt for these loans only if other options are not available.
• Payday loans are sources of fast cash hence people should restrain from borrowing money for unnecessary needs.
• Extending the loan period may not be a good idea as the rate of interest increases if the borrower chooses not to pay with the stipulated date.
• One must have a properly chalked out budgetary plan in order to repay the payday loan in stipulated time.

It is often suggested that these loans are not good because the rates of interest are too high. But these are short term loans and the interest that has to be paid is not high, so borrowers need not be discouraged. These loans are especially helpful when the money is quickly required for a short term period as these loans do not require long approval procedures. Thus with proper budgetary planning, these loans can be the right pick to meet unexpected monetary needs.