If you are facing a financial emergency, a cash advance loan might be right for you. These are small loans, usually less than $1,500 and are meant to be repaid within 30 days. You should not take a loan out for more than your next paycheck so you can be sure to repay it when it is due.
You can apply for a payday loan either through a local lender or through an online lender. You may also notice that some lenders are directly lending money, while others are serving as a third party taking care of all the details and serving as a carrier for other lenders. Online lenders, either direct or indirect do not require credit checks, making them a good option for those who might have a ding or two on their credit report.
Most online lenders will require you to fill out an application and either submits it directly through their website or send it in via email. They will then review your application and ask for proof of your income and ability to repay the loan. You may also need to prove residency and a bank account. Once your loan is approved, the monies will be deposited into your bank account, usually within 24 hours. This fast payment is what makes payday loans so popular. You can draw on the monies quickly to pay for emergency medical bills or to get your car repaired. The monies can be used for anything, but you should never borrow more than you can afford to repay with your next paycheck.
It is much easier to get approved for an online payday or advance loan than a traditional loan. This makes them a very good option for those with poor credit. You must be sure, however, that you can repay the loan on time. If not, these loans can accrue interest at a very high rate and become very expensive to pay off. Never take out another payday loan to repay the first. This can become a very dangerous cycle and cause you to fall behind and never get the loan paid off.
If you do need to take out a cash advance loan, be sure to repay it as soon as possible. The best option is to try and live within your means so you can build a savings to help you when you face emergency financial situations. If you can learn to pay yourself each month and it becomes a habit, you can build a good savings account. This will help you make ends meet when finances are lean.