A Payday Advance is a type of loan that SPECIFICALLY relates to your Payday, hence the name.
A Payday Advance is the same as a Payday Loan and, particularly in the USA, these types of loans can also be called Cash Advances.
A Payday Advance is when you are able to borrow money until you are next paid, based on you having a job and the amount of your wages more than your credit score.
If you have an emergency come up one month, for example, maybe your car has broken down but you need it for your work, but you have no spare money for repairs…
You could get a payday advance loan to pay for the cost of the repairs and get you moving again, and then you repay this loan with interest on your next payday.
All honest reputable payday advance direct lenders will clearly tell you what they charge and so you know before you take the loan out exactly how much you have to repay and when.
Most payday advances are for between 1-30 days.
Some companies allow you to borrow money for a longer time, and it is also possible to roll the debt over to the following month if you are not able to repay it when you promise to – so long as you contact your payday advance lender BEFORE your repayment date to discuss this with them.
However, please don’t do this unless you really have to! Payday Advance loans are for emergencies only and the interest is manageable, if you repay them within a month If you don’t, they can get very expensive very quickly.
The payday lender who will lend you the money, will need to check that you DO have a job, and they will need to know HOW MUCH you get paid, as the amount of money you will be eligible to borrow as your Payday Advance, will directly depend on your wages.
Please visit our Payday Loans Knowledge Base for more information about what documents you will need and the eligibility criteria.
Most Payday Advance loan applications can be done online and you will know whether a company will lend to you in under 20 minutes normally. In the USA you are also able to go into certain stores where you can apply in person.
We wil detail all these places and websites ASAP 🙂
Payday Advances are NOT a cheap way of borrowing money, and if you have any other ways to borrow money that will cost you less in interest, we strongly suggest that you look at these first.
However, if you are not able to borrow money anywhere else, a payday advance loan can get you out of a tight spot where you would otherwise have to pay even bigger bank overdraft fees, or over limit fees on your credit card.
Payday Advances have been criticised by some people for charging such high interest rates. We go into detail about this in other areas of the site.
The sad fact is, a lot of people borrow money with no intention of paying it back. There are also a lot of people who borrow money with every intention of repaying it, but when they have to, they are unable to for many different reasons.
The reason lenders pay so much attention to your credit score is so that they lend to the least ‘risky’ people. There are many flaws with this method of doing things, but for the lenders it seems to simplify things. Sadly it seems harder and harder to get credit and good people are getting turned down.
Payday Advance lending companies specialise in offering loans to high risk people with low credit scores, and they pay more attention to whether you have a job and how much you get paid, than your credit score.
Most payday advance lenders WILL check your credit score at least in part – so maybe a basic one rather than a full one – the first time they lend to you – and most seem to not check your credit from then on, so long as you repay their loan when you promise to.