What do people use a payday advance loan for?

Needing to borrow money isn’t always about needing to take out a large loan for a long time. Sometimes, you may need a smaller loan, just to tide you over for a few weeks or even days. This is where a payday advance loan may be useful.

CFPB

There are many different reasons why consumers choose to use a short-term loan such as this rather than more complicated or longer term standard loans, also read – “7 Things You Should Know.” You may for example, just need to borrow a smaller sum for a shorter period of time because you:

– have an unexpected bill come in
– have to pay for something that you didn’t anticipate
– have a heavy month in outgoings and need a bit of extra cash to tide you over
– find a bargain that you need immediate cash for to buy on offer but you don’t have any spare money until you next get paid

A payday advance loan isn’t like other types of loans in many ways. This kind of borrowing is more designed to help you:

– borrow smaller sums (i.e. hundreds rather than thousands of pounds)
get a loan in 24 hours or less
– bypass the standard loans approval procedures and waiting times
– borrow money that you are then able to repay the next time you get paid

This kind of loan suits many people who find that they may need to borrow money but who find that their lending needs don’t fit traditional loan methods. Let’s say, for example, that you see a bargain cut-price holiday on offer that is only available for a couple of days. If you don’t get a deposit down by that time, the offer will close.

You may not have the cash spare now. You may be a couple of weeks away from your next payday when you have access to the deposit money. But, you may not be able to get a bank to lend you the small sum you need and they are highly unlikely to approve a loan in time in any case.

A payday advance loan may be an alternative worth considering. This could give you the cash you need within a day. All you have to do then is to repay what you borrow plus the interest fee that is charged and you’ll be sorted.

7 Reasons to Oppose the Federal Payday Loan Rule

Does bad credit affect a payday loan advance?

Borrowing money nowadays doesn’t always just depend on whether you are able to repay what you want to borrow. Most standard long-term borrowing solutions (such as secured and unsecured loans) may also involve an in-depth credit check. So, your past history with money may play a big part in whether you’re approved for a regular loan. This may not, however, be as much of an issue with a payday loan advance. Why is this?

Payday loan advances are loans and they do work in a standard way (i.e. you borrow money and then pay it back with interest). But, unlike the kinds of loans you might get from your bank or building society, these loans are a little different. They may, for example make it easier for you:

1 – to borrow smaller sums
2 – to get instant approval
3 – to get a small loan in just hours or a day or so
4 – to get out of debt quicker as the loan is automatically repaid on a pre-set date when you next get paid

Some people with bad credit issues may find that this kind of solution works well for them. It may, of course, depend on the payday loan company that you choose to use. Some may not run any kind of credit check; others may just run a quick version rather than the in-depth analysis that a bank or building society may do for their loans.

Provided you use a payday loan as you are meant to (i.e. pay it back when your salary next comes in) then you may not do any further harm to your credit record either. Bear in mind, however, that these kinds of loans are designed for short-term, occasional financing only. If you need a larger loan or longer to pay it back, then this may not be the best solution for you.

Generally, all you may need to get a payday loan advance is to:

1 – be aged over 18
2 – to be in full-time employment, earning over a certain sum (this may vary depending on the company you talk to)
3 – hold a US-bank account with a debit card
So, if you need a short-term small cash advance, even with bad credit in some cases, a payday loan advance may be a solution worth investigating.