subject: High Risk, High Reward: Cash Advances [print this page] Even for people with good credit, a bank loan may be hard to secure. Banks have to practice solid investing. As for cash advance businesses, the rules are a little different. Paycheck advances can be a great resource if used correctly.
One significant incentive to a paycheck advance is that bad credit history doesn't matter. You could still be approved for a payday loan if you have written bad checks in the past or have overdue bills. The basic requirements are only that you're an 18-year-old US citizen who has a bank account and can show proof of a regular income. There is very little to worry about through the short process. This system of lending holds a lot of risk for the company. For the lender there is much risk; for the customer the reward is high.
There is little negative that could be said if you take a payday loan responsibly. The most essential rule is to pay back your loan at the proper time. This is a good practice for any loan, but it is even more important for cash advance loans. There are very stiff penalties for late repayments. You don't want to make problems by adding charges you can't afford. Be sure that you're ready to repay your loan in full and on schedule. If you're allowed repay the loan ahead of schedule, that's a very smart idea. Borrowing as little as needed is one good way to help ensure you can repay it. The maximum loan amount usually ranges from $1,500 to $2,000. Be confident that when your salary arrives you can pay back your loan.
For many people a cash advance is an opportunity to get a short-term loan for an emergency situation without facing fees on a bank account overdraft or for a bounced check. However, if you don't repay the company as you should the incentive was wasted. You create awful financial burdens when you make bad decisions.
From start to finish the payday loan process is quite easy. Even so remember that it's important not to abuse the opportunity. If you're not careful, the consequences can be much higher than the reward. If you act responsibly, there's no reason you'll experience anything but the positives.
