If it's just a couple of days until payday and you need some money now, then you might be running out of options. Thankfully, you do have one reliable option, and that is to get a cash advance. To help you understand everything that you need to know before diving in, here is an introduction to cash advances:
What is a cash advance?
You might have heard it referred to as a payday loan or a payday advance, but a cash advance is simply a loan that is meant to be paid back on your next payday. There are a number of laws that affect the size and availability of cash advances, but they are often capped at anywhere from several hundred to a thousand dollars or a percentage of your monthly income.
How does the process work?
When you decide to get a payday loan, you will need to bring some identification information and some proof that you will pay the loan back. This often means proof of residence and employment.
Many cash advance providers will ask that you sign a check that is dated for your next payday. This effectively means that they can cash the check as soon as your money is in the bank, which prevents you from accidentally forgetting about your repayment. While this may seem strict, it does reduce the likelihood of your interest going up as result of a missed payment.
If your check bounces for some reason, then your repayment deadline will likely be extended to your next payday. Of course, this is often accompanied by an increase in interest.
Is a cash advance a good idea?
As long as you use a cash advance responsibly, then it can serve as a very useful tool. As with many loans, the dangers lie in misuse and falling into a cycle of debt.
To avoid this, you want to make sure that you pay your cash advance back at the earliest opportunity. If you do not and somehow need even more money for your next payday, then you could potentially need another payday loan to cover your first payday loan. Fortunately, some states do have laws to protect you from these situations.
You also want to minimize the amount of money that you take, since the more you take, the harder it will be to pay back the loan. Interest can add up pretty quickly, so you should only take out a cash advance for products and services that you need immediately, like food staples and medical services.
For a cash advance, contact a company such as Cash Depot Inc.