Payday advances how do they work?

 

People often ask what is a payday loan, and how does it work? Think of a time in your life when you needed to borrow some money. Maybe it was from a buddy or family member until you got paid. Say it was $150. And when you got paid you paid them back $165 and said, "Thanks. You without a doubt bailed me out" The exact thing happens when you apply for a payday loan. You are applying to get a loan against your next pay check. That's it. Of course, every one brings up how payday advances have high interest rates. The reason they must have high interest rates is because people borrow money. Then come payday they don't pay it back. So, the lenders must eat that loss. Or spend a lot of money search for and contacting the borrower struggling to get paid back. So when you hear a payday lender saying they charge 10% a week. That seems criminal. But if you borrowed $150 from a friend and paid them back $165 in 7 day it is also a 10% interest rate.

It is still very important to keep in mind that these payday advance lenders don't simply let you just take any amount of cash from them. They really want some confidence that you are going to pay the loan back. You need to prove to them that you have a job. And, that you have a checking account. The job proves to the lender you have money coming in to pay them back. The checking account is so they can transfer the money into the account, then on payday withdraw their loan payment. The biggest trouble with obtaining payday loans is clients borrow too much money. If all they need is $350, but the lender says they qualify for $10000. And they decide to borrow the entire $1000 and spend it on stupid stuff.. Then come payday the lender take the $1100 from their checking account and now the borrower is flat broke because their whole check was $1125 but the loan payment was $1100. So now all they have is $25 left for a week. So what do they do? Yep go and borrow an additional $1000 to get them to their next paycheck. The lender lent them the $1000, it was the borrower that wasn't smart with their money. But regretably, the payday lender is the one looking like the crook. When all they did was help a person out by lending them money for a week over and over.

If you live in the USA and are in need of a payday loan visit paydayadvancecredit.com they can help.