|
Cash Advances - How do they compare with other loans? |
|
|
|
|
Written by Webmaster
|
By Andrew Evans
Payday advances are loans borrowed over a short period with the principal amount being between $100 to $500 and normally range over a time period of a few weeks weeks.The interest rate can be highter than 500% of the normal market rate. The most important issue in regard to payday advances is that any customer with or without a good credit rating can make an application for a payday loan and can even get approved within 24hrs of the application. This means that payday advances a good solution for a person who has been rejected through normal lending institutions like banks.
Payday advances are highly different from a loan that you could obtain from a bank or another lending institutions. A bank does some background checks on the customer and sees if they have any loan default or has some negative marks on their credit rating. If they find anything damaging then you will probably be rejected for your loan application. Also, a bank also requires you to go through massive paper work and other official formalities before you are given your loan. Even though you are approved for your loan, you cannot expect
your cash to reach your bank account anywhere less then 5-6 days from the application.
However, a payday loan can be approved without any background check and with zero or very little paper work. Besides that, the applicant can receive the cash into a bank account in 24 hours of less. These points make payday advances an exciting solution for an applicant looking for a short term loan.
You should remember that a payday loan comes with a large interest rate; anywhere between 400-600% while a traditional loan has an interest rate of around 40-60% in general. Though a payday loan might seem a lucrative solution, it is always advised to avoid payday advances and have an emergency fund to solve your financial crisis as non payment can result in a vicious circle of debt.
The author owns a number of money related sites. For more information and advice on no fax payday loans or faxless payday loans as they are often called, click on the links above.
|
