Looking for a way to get instant cash before your next paycheck?
It happens to the best of us. Sometimes the time between paychecks is just too great, and you need money to cover those bills or to pay for an emergency situation.
Payday loans or advances can be your solution to such times of financial troubles. These loans can be taken out before your official next payday so that you can have immediate cash.
Do you need money, but need it before your next paycheck? Here’s how payday loans can be your potential solution to financial troubles.
Read on to learn more about how a payday loan can help you out before your next pay cycle.
1. Payday Loans are Short Term
Payday loans are offered to borrowers for a limited amount of time, unlike other loans that last months and years.
After approval, borrowers will receive their requested loan amount as cash, a direct deposit, a check, or debit card preloaded with the loan amount.
Borrowers will then have to pay the loan off by the date of their next paycheck or when an approved source of income arrives via a pension or social security check. You will usually have to pay off your loan within two to four weeks of receiving the cash.
People approved for a payday loan will usually have to pay the amount back in a single payment rather than in increments like other loans.
There are some exceptions to the short-term nature of payday advances. Some lenders are allowed to renew or rollover loans, extending due dates of payoffs through a second paycheck. In these cases, borrowers will just have to pay the initial interest fees until the extended deadline.
2. You Can Get Payday Loans No Matter Your Occupation
Nearly everyone is eligible for a payday advance, which makes them such a great solution for those times when money is especially tight. You can apply to receive an advance no matter what your occupation is or how much you receive for each paycheck.
Retired individuals and those receiving pensions or social security are also eligible to apply for paycheck advances.
Service members are at an advantage when it comes to payday advances. Under the Military Lending Act, service men and women can’t be charged more than 36% interest on any kind of consumer loan.
3. You Can Obtain an Advance Online
There are many ways to get a payday advance. Your easiest option is online. Online lenders like Cigno will offer easy applications that don’t ask for much more than your bank account number.
Online loans can also be deposited in your bank account within a few hours, depending on the lender. At Cigno, you can receive funds in your account by this afternoon.
4. You Will Have to Pay Fees On Your Loan
Payday loans are still loans, meaning that you’ll have to pay fees on the amount you’ve borrowed. Generally, states set a maximum fee of $10-30 per $100 borrowed for payday advances. These fees will be built into the payoff amount.
Make sure you understand what fees you’ll have to pay for an advance once you apply. Costs will vary depending on the lender and your state of residence.
5. Payday Advances Are Typically Smaller
Because they are short-term with high fee structure, payday advances range from $100-$1,000, depending on the state. Loans of this nature are typically easier for borrowers to pay off, especially given the amount of standard paychecks.
When your next paycheck arrives, you’ll have to pay off the amount you’ve borrowed in addition to any fees.
6. Applications for Loans Are Straightforward
The good news about payday advances is that fact that applications are relatively easy. You do not have to provide a lot of information and most applicants are approved immediately.
If you are borrowing from an online lender, you’ll be able to submit your application online, receive the loan contract digitally, and have cash in your bank account in a very short amount of time.
Make sure you have bank account information handy in the form of a recent bank statement.
7. There Are Still Payoff Terms
Just like any loan, a payday advance will have payoff terms. This means that you will be given notice of repayment terms when you apply for the loan and once it is approved.
Repayment terms will vary from state to state and case to case. All borrowers will usually have to pay off payday loans by the date of their next paycheck. There are penalties if this does not happen.
It’s important to ask for a clear explanation of your loan’s payoff terms when you receive it to avoid penalties and extra fees.
8. Not All States Offer Payday Advances
Some states do prohibit or severely restrict payday loans for a variety of reasons. Lenders may not be able to offer interest rates and loan amounts in certain states due to state laws.
If you aren’t sure if your state offers payday advances, you can contact the attorney general of your state or give us a call at Cigno Loans.[Tweet “What Are Payday Loans? Your Guide to Understanding Payday Loans”]
Understanding Payday Loans
Even if you receive paychecks from your employer bimonthly, life happens. If you find yourself in a situation where you need cash to cover bills or other unexpected costs, you can apply for a payday loan.
Payday advances are short-term loans meant to be paid off on the day of your next paycheck. You can obtain these easily online via Cigno Loans, for example, in as little as a few hours. You’ll still have to pay interest on your loan, and loan amounts typically are no greater than $1,000.
At the end of the day, the most important thing to understand with payday loans are the terms your lender offers. Be clear on interest rates and payoff dates, and be sure to ask questions if anything isn’t clear.
At Cigno, we are your source for fast cash no matter what situation you find yourself in. We provide short-term and same day loans, payday advances, and loans for borrowers with no or poor credit. Our application process is easy and painless, and we have a very high approval rate for all borrowers.
Reach out to us today to get the cash you need in your bank deposit as soon as this afternoon!