Finance

What is a Payday Loan Advance? Benefits and How it Works

Payday loan advance is a type of short-term loan that you can use to cover your expenses until the next payday. Payday loan advance providers give loans of up to £1000 and charge high-interest rates, which can be as high as 50%. 

Although a payday loan advance is not the best option to cover your financial needs, you can still make good use of it by following some tips. In this article, we will discuss what is a payday loan advance and how it works so that you can learn all you need to know about it.

The value proposition

A payday loan advance works by giving you an amount of money that you can use to pay off debts, make an emergency purchase, or simply use as spending money. Compared to other types of loans (mortgages, car loans), it’s extremely fast: funds are usually available within 24 hours of submitting your application. 

Benefits

A payday loan advance has many advantages. For example, you are borrowing money against your next paycheck. Because of that, you will not need to take out a traditional loan with interest (which can be quite high). Instead, you’ll only have to pay for your borrowed funds plus a small fee. 

 

Usually, these fees do not exceed $15 or so per hundred dollars borrowed. As long as you can repay your payday loan on time, there’s no problem getting one from them either. This type of lending does require that you have verifiable employment history for at least six months though.

Cons

A payday loan should only be taken out for short-term financial needs, not as a long-term financial solution. Even though you may get cash quickly, you could get stuck in a long cycle of continuously taking out payday loans to pay off your previous ones. It’s easy to end up trapped in debt because of these loans if you can’t afford to pay them back on time. 

If that happens, avoid using more payday loans to keep up with your existing debt; instead, reach out to creditors directly or consider talking with a debt counsellor about setting up an affordable repayment plan.

How do Payday Advances work?

Payday loans in general are pretty simple. Borrowers apply for money, pay back their loan (plus fees) as soon as they receive their next paycheck, and then repeat as necessary. A payday advance works much like a traditional payday loan, but with one major difference: You typically have more time to pay back your loan because you’re only borrowing for one paycheck cycle instead of two. 

 

This can be very helpful if you struggle to make ends meet at month’s end or simply need an extra couple hundred dollars to get through short-term financial difficulties.

Applying for one

It’s simple to apply for a payday loan advance. You can either fill out the application form on our website or apply in person at any of our locations. It takes about 10 minutes, and once you’ve handed over your identification, we give you cash on the spot – no questions asked. If you can spare a couple of hundred pounds now but need more than that to get by until payday, take advantage of the convenience of applying for one online! 

 

The process takes just moments, and even if your request isn’t approved right away (which it probably will be), you don’t need to leave your house or office during that time. What could be better than an online payday loan application from inside your home or office? Nothing!

Legal requirements

When people are under personal financial duress, they often turn to a payday loan advance. These loans provide quick cash to borrowers in need. Though these loans can help tide people over until their next paycheck comes through, be aware that some lenders offer what amounts to predatory lending practices—they charge extremely high-interest rates for short-term loans which often come with hidden fees. 

 

In fact, some states have outlawed certain payday loan practices, including usury (charging extremely high-interest rates) and short-term balloon payments that require borrowers to pay off their entire balance at once when their loan expires. Know your state’s laws on payday loans before you take out one of these high-interest personal loan.

The application process

The best payday loans uk are short-term loans that can be used to cover emergency expenses until your next payday. To apply for a loan, you’ll need to fill out an application with your contact information, employment status, income, bank details and details of any savings or other assets you have. If approved by lenders—and that depends on how good your credit history is—you’ll receive funds through direct deposit no later than 24 hours after approval. 

 

Monemyst UK

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