There are going to be tough moments in your life when emergencies cause complications, and extra cash would come in handy. Conveniently, almost like clockwork, it seems most emergency situations happen just before payday, and sometimes these emergencies are so pressing one "would be" borrower cannot wait for the next check to arrive.
For those without savings and living paycheck to paycheck, a bad credit cash advance may be the only option they have to meet their emergency needs.
When compared to conventional "bank" loans the rates of a bad credit cash advance will be higher, but the benefit of this type of loan can often be immense. High rate cash may be the price one pays to get out of a rough jam.
Typically, bad credit cash advances are available to just about anyone with a semi-secure job and a stable home address. Credit history is unimportant, and can be poor, or even non-existent because most outlets for paycheck loans do not check credit scores or payment history.
Employment is, however, verified, and most payday lending companies will want to see valid checking account at least 90 days old. In most cases, the money is wired into the borrower's account with a pre-dated, agreed upon, pay back time. On the date the loan is due, the amount owed to the lender is electronically debited through the same account.
Reasons vary as to why a person may choose to secure a bad credit cash advance, including an emergency vehicle repair, an unexpected expense or an unforeseen medical issue. Simply put, when the need for extra money arises many cannot qualify for a short-term bank loan. Those that can't, rely on payday cash loans to meet their needs.
Controversy Over Rates & Terms:
The high cost of bad credit cash loans has been newsworthy of late.
Some claim the estimated 400% annual rate creates an undue burden on the people who can least afford it, the middle class ranging from incomes of $25,000 to $75,000 yearly. There are arguments for both sides. In a nutshell, the people who use payday loans services have no other option to meet their needs. They need these loans. Plus, they are not borrowing the money for a full 12 months, only about 4 weeks, thus reducing the interest rate, significantly.
Make no mistake, most people understand the costs of this loan before they apply. They have read up on the lending aspect by reading articles, like this one. They also understand that you must use good cash management practices, making sure to repay the loan on its due date.
Most bad credit cash advance borrowers respect the lending process and repay the money on time, protecting their relationship with the lender in case they need money a second time.
Be smart. Budget wisely. And you may never need the cash. But if you do, use payday loans to meet short-term financial needs and make certain to pay back your loan on time.