Getting Emergency Loans
If you’re in a tough financial situation and are in need of cash fast, payday loans might just be the solution for you. So what is a payday loan? It’s a short term loan, also known as cash loans, that must be paid back usually within 30 days or your next pay check. There are a lot of advantages and some disadvantages to receiving a payday loan. Let’s take a look at some of them as well as examine other options you have depending on your circumstance.
Getting a payday loan is relatively simple. typically there are no credit checks and approval is instant. Most cash advance lenders can transfer the funds to your bank account within a a couple of hours so you have the funds by next business day. To qualify for a loan, you simply need to be 18 years or older and be employed. A cash advance can be used for anything you'd like. They usually range in size between $100 and $1,500; however, many states have regulations on the amount you can actually borrow. Cash advance loans can serve as a real easy solution when a financial emergency happens.
One of the biggest downsides of a cash advance loan is the interest rates and fees charged. It is common to be charged a $10 to $20 fee for every $100 you borrow. For this reason, payday loans tend to be expensive, which is why I advise you use them only for emergencies and ensure that you’ll be able to pay them back within a pay period.
There are other alternatives to payday loans, such as personal loans, which can be paid back in 1 to 3 years; however, they do require credit checks and can take a few weeks to get the money. There are credit cards that offer cash advances which do not have to be paid back immediately, but over time the amount can grow since the interest rates are still high.