Who takes payday
advances?
For millions of Americans –
particularly those who live paycheck
to paycheck – these tiny,
short-term loans are a way of
life. Just before Christmas
last year, more than 10 million
people took out a payday advance,
according to industry statistics.
What is a payday
advance?
A payday advance is a
short-term loan for a small amount of
money (usually up to $500) often
perceived as a new method of
acquiring consumer debt. Payday
advances go by a variety of other
names, including payday loans, cash
advances, check advance loans,
post-dated check loans or deferred
deposit check loans. Usually, a
borrower writes a personal check
payable to the lender for the amount
he or she wishes to borrow plus a
fee. The company gives the
borrower the amount of the check
minus the fee. Fees charged for
cash advances are usually a
percentage of the face value of the
check or a fee charged per amount
borrowed.
Where can I find a quote
for payday advances?
LoanShopUSA.com is the leading online
marketplace for payday advances. With
more than 1000 participating lenders
in our network, we can help you
locate one who can help meet your
needs. Click here to get your
Quote for Payday Advances.
This is a free service.
When should I consider a
payday advance?
People
who take payday advances often say,
“I just need enough cash to
tide me over until
payday.” They are often
lower-middle-class “working
poor” who see few options other
than such loans. It's not
illogical. These payday
advances are safer than dealing with
loan sharks and cash advance loans
may end up being cheaper than actual
banks.
Why are the interest rates
so high?
Due to
processing costs on such small loan
amounts, conventional interest rates
would not be profitable. For
example, a $100 one-week loan, at a
20% APR (compounded weekly) would
only generate 38 cents of interest,
which would fail to match loan
processing fees. Also, the
interest on payday advances is less
than the $60 to $70 penalty for
bouncing a check or the $30 in late
fees – not including interest
– that credit card companies
extract for missing a payment.
How do I repay a payday
advance?
The loan is
given in cash and paid back via
electronic withdrawal from the
debtor's checking account. If
you extend or “roll-over”
the loan – say for another two
weeks – you will pay fees for
each extension. If you don't
pay, only thing that gets broken is
your credit rating.
Ready for your
Payday
Advance? Get Your
Payday
Advance Quote
