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Author: ignaciomorales08 | Total views: 16 Comments: 0
Word Count: 698 Date: Tue, 13 Jan 2009 3:19 PM

What are Payday Advances all About?

Payday advances are very popular nowadays. There are signs and store fronts on nearly every corner. When you type in "payday loans" in your Internet search engine, it pulls up over ten million results!

There are other names for payday advances, of which you might be familiar. They are called cash advance loans, post-dated check loans, check advance loans, and deferred deposit check loans.

No matter what you decide to call it, payday advances are all the same. They are short term loans in small amounts that are charged fees.

For those who need money now, those fees are often acceptable. It is the price we pay for the convenience. And who doesn't like more convenience in their lives?

How They Work

The general procedure for getting a payday advance is usually the same, no matter how you get your loan and who you get it through. You will be asked to write a personal check that is payable to the lender at a future date that you both decide upon.

Some lenders even now let you opt to sign a pre-authorized bank withdrawal instead to make the process seamless. After you do this, the lender then gives you a check in the amount you wish to borrow.

The fees that are applied to payday advances vary depending on the lender. Most charge a percentage fee based on the amount you are borrowing.

Often, this percentage will be based on increments of the amount borrowed. For example, you might pay a certain percentage for every $50 or $100 you borrow. You will also pay more fess if you roll over the term of you loan.

There is something called The Truth in Lending Act that makes it legal for lending companies to charge high fees for their payday advances. But on the flip side, the Act puts into place certain requirements in order to protect their borrowers.

For example, the lender must fully disclose all fess associated with their loans so you can make a good choice in what you are getting. The information must be provided to you in writing and must include the dollar mount of the finance charges you are being assessed as well as the APR for the loan.

Each state in the United States has its own laws regarding the maximum amount that can be borrowed and the rates that can be charged. You can easily find this information on the Internet.

There is no way around the fees that are charged for payday advances, but if you do some comparison shopping, you will be able to find the best deal. Be sure to browse the Internet and make phone calls to local lenders to research what is being offered, by whom.

Some people choose to visit a storefront location because then they can see who they are working with. Others like the option of applying for a payday loan in their pajamas, at home.

If you decide to take the Internet route, then make sure the companies you are researching are legitimate and are located within the United States. Laws are not the same from country to country, so buyer beware.

If you have a lender who won't show you the information that is required by The Truth in Lending Act, then run the other way. There are a lot of small time scammers with pawn shops and lending stores that are simply out to take advantage of you.

Be a smart consumer and research your lender and trust your gut. A reputable lender will have been in business for awhile, be forthcoming with all fees and information and will even actually recommend that you borrow only what you need. Granted, they make more money when you borrow more, but they also know that the fees can be too much if you borrow frivolously.

Taking all this into consideration, and taking the advice given, rest assured that you will be taken care of and not taken advantage of.

About the Author

Ignacio Morales moved to the United States from Mexico in 1984 seeking the American dream. He has a masters degree in Finance and has been a consumer advocate for decades. He recommends getting a Payday Advance Online for all your emergency cash flow needs.

Contact Info:
Ignacio Morales
ignaciomorales08@gmail.com
http://www.BestPaydayAdvanceOnline.com

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