Did you find yourself in a situation where you need emergency funds for your bills and other essentials? Applying to online instant money loans at Payday Depot like payday loans and cash advances can be your last resort if you have minimal sources. But what are payday loans and cash advances?
A payday loan’s amount depends on the state’s law where the borrower is applying. It’s mostly above and nothing below $500.
On the other hand, a cash advance allows credit cardholders to withdraw cash straight from their credit accounts. However, in an online setup, a payday loan is considered a cash advance as they are both similar and have very few differences.
Advantages and Disadvantages of Payday Advance
Before applying for a payday advance online, you should know the following.
Here are the advantages:
- Payday advances are short-term loans offered online. Payment will be on the next payday or within a week or two.
- It’s easy to apply and to get approved. Lenders can process applications and approval within a few hours only.
- The loan will not consider the credit score or history of the borrower.
- It only needs basic requirements and no collateral.
Meanwhile, the disadvantages are:
- A payday advance is expensive. Payday loans and cash advances have high or fixed interest rates and fees. This amount depends on the state’s law or the company policy.
- It can be a trap. Lenders who offer payday advances will not check your credit score or even your credit history.
- Access to your bank accounts. These online lenders will ask you to fill up their application and provide personal details, including your bank details. Issuing post-dated checks and direct debits on your account is their payment mode.
- Payday advances are not available in some states. Some states in America are still against payday loans, while others have stringent restrictions.
How Do They Work?
Borrowing money from a loan company online is quick and very accessible. Before applying, they have a list of requirements such as Valid ID, proof of income and employment, and active bank account.
After submitting your application to the lender, they will notify you if it’s accepted. Depending on their process, loan companies will give you options or payment terms after approval, while others already included that on their application form. After getting approved, you will receive your contract and money on the same day.
Borrowing money is risky, so you need to be vigilant when doing your transactions. There are alternative ways to get money, such as asking from friends and family, bank, and a credit union, or lowering your expenses and starting saving.
But if you need quick cash for an emergency, then applying for payday advance online can be helpful. You have to be responsible and pay your credits on time to avoid being in a cycle of debt.