Not every personal matter, debt woe, or credit problem is good for a cash advance loan, or referred to as a payday loan or PDL. Cash advance payday loans are short-term loans that provide people with money upfront, but require them to pay the full balance back within a short time period, usually the next payday. There are advantages to short term loans, but there are also some things to consider before getting one to know if short term loans are right for the situation. The following info will go over some of the reasons people use cash advance loans to show when is a good time to use them, and when they should avoid getting one.
Pros of Cash Advance Loans:
* No credit check is required, and the financing doesn't get reported to the credit agencies so these loans don't effect credit scores. This is both a pro and con as it helps to be able to get loans without using credit, but in the same token it doesn't help credit either. If a person gets a loan and pays it back on time, it doesn't improve their credit score, but they are also not dinged if they don't pay it back on time.
* Approval is simple and instant online and a people can get money no more than a bank and account and id. These cash advance loans are guaranteed using a bank account so all a person needs to get a payday loan is a bank account and they can get approved quickly without tons of signatures and checks.
* There is only a one-time fee for the service and no installment payments or interest is charged for these loans. Although they call it APR, these loans don't have any installment payments, but rather one payment is made and the lender charges a fee for the service. The fee is capped in most states, but check with local laws regarding the fees for cash advance services.
Cons of Payday Loans:
* These loans will not improve a person's credit score or get reported to the credit agencies. This means that short term loans will not improve one's credit history.
* Short-term loans require the full loan balance to be paid back by the next payday, so unlike bank loans where a person is able to pay back the loan over a long period making small payments, these loans have to be paid back in full within a couple of weeks. This means that it's necessary to only take what a person can pay back within the give period.
Good Reasons To Use Payday Loans:
* Car repairs - Vehicles break down all the time, and this can be one of the most stressful things in life as people are not sure about repairs, costs, and how they are going to continue getting to and from work. Having so many things to deal with and being short money on top it makes this scenario perfect for cash advance loans. People can get the money they need today to fix their car and get back on track without any worry of being short funds.
* Unexpected Bills - Ever get a parking ticket, or other expense that is quite large and throws a monthly budget out of whack. Paying off traffic tickets, or other last minute unexpected expenses is another good situation for cash advance loans. These loans can get the money needed to make sure the fine or bill doesn't escalate further and making it harder to pay off. Some bills are very sensitive so making sure they are paid on time is important and could be a good reason to get a cash advance loan.
* Not Paying Late Fees - Everyone has times when they are just short money for whatever reason and they are not sure how they will pay their bills. The problem is that almost all credit services will charge late fees for payments not paid on time. The late fees that companies apply can add up quickly and make another expense in themselves. Getting a payday loan to avoid paying late fees is also a good situation to use cash advance loans. Late fees from lenders can be as high as $50 for just one company, and they don't care what the balance is of the account or the amount due for the payment. If a person pays late they will be charged the same high fee. Getting one or two late fees may be okay, but if a person has to decide between getting several late fees or paying a cash advance fee, they better option would be the cash advance fee. The reason that the cash advance fee is better is because paying credit late not only charges a person money, but reflects negatively on their credit history and can hurt their credit score. Given a scenario of paying late fees and bad credit score over a short term loan fee, the better choice would be the short term loan and save the person's credit score.
Pros of Cash Advance Loans:
* No credit check is required, and the financing doesn't get reported to the credit agencies so these loans don't effect credit scores. This is both a pro and con as it helps to be able to get loans without using credit, but in the same token it doesn't help credit either. If a person gets a loan and pays it back on time, it doesn't improve their credit score, but they are also not dinged if they don't pay it back on time.
* Approval is simple and instant online and a people can get money no more than a bank and account and id. These cash advance loans are guaranteed using a bank account so all a person needs to get a payday loan is a bank account and they can get approved quickly without tons of signatures and checks.
* There is only a one-time fee for the service and no installment payments or interest is charged for these loans. Although they call it APR, these loans don't have any installment payments, but rather one payment is made and the lender charges a fee for the service. The fee is capped in most states, but check with local laws regarding the fees for cash advance services.
Cons of Payday Loans:
* These loans will not improve a person's credit score or get reported to the credit agencies. This means that short term loans will not improve one's credit history.
* Short-term loans require the full loan balance to be paid back by the next payday, so unlike bank loans where a person is able to pay back the loan over a long period making small payments, these loans have to be paid back in full within a couple of weeks. This means that it's necessary to only take what a person can pay back within the give period.
Good Reasons To Use Payday Loans:
* Car repairs - Vehicles break down all the time, and this can be one of the most stressful things in life as people are not sure about repairs, costs, and how they are going to continue getting to and from work. Having so many things to deal with and being short money on top it makes this scenario perfect for cash advance loans. People can get the money they need today to fix their car and get back on track without any worry of being short funds.
* Unexpected Bills - Ever get a parking ticket, or other expense that is quite large and throws a monthly budget out of whack. Paying off traffic tickets, or other last minute unexpected expenses is another good situation for cash advance loans. These loans can get the money needed to make sure the fine or bill doesn't escalate further and making it harder to pay off. Some bills are very sensitive so making sure they are paid on time is important and could be a good reason to get a cash advance loan.
* Not Paying Late Fees - Everyone has times when they are just short money for whatever reason and they are not sure how they will pay their bills. The problem is that almost all credit services will charge late fees for payments not paid on time. The late fees that companies apply can add up quickly and make another expense in themselves. Getting a payday loan to avoid paying late fees is also a good situation to use cash advance loans. Late fees from lenders can be as high as $50 for just one company, and they don't care what the balance is of the account or the amount due for the payment. If a person pays late they will be charged the same high fee. Getting one or two late fees may be okay, but if a person has to decide between getting several late fees or paying a cash advance fee, they better option would be the cash advance fee. The reason that the cash advance fee is better is because paying credit late not only charges a person money, but reflects negatively on their credit history and can hurt their credit score. Given a scenario of paying late fees and bad credit score over a short term loan fee, the better choice would be the short term loan and save the person's credit score.
About the Author:
For reliable cash advance services, Cash Advance Reviews provides ratings and options from some of the top online payday loans to help people get a fast same day payday loans online.
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