A payday advance, also known as a payday loan, is a short-term personal loan financial service.
The payday advance loan industry has seen growth in recent years and the availability
of payday advance companies has educated consumers and given people more opportunity
to utilize the service when financial emergencies strike. But with that growth,
some less established companies have employed negative business practices that have
given the payday advance loan industry a bad name. This, coupled common misunderstandings
of these loans, have caused many people in true financial need be too wary to take
advantage of a potential credit saver. The most commonly misunderstood or feared
aspects of a payday advance are considered below.
1. Companies offering online payday advances aren't reputable
Numerous advertising and email campaigns that are unscrupulous and viewed as spam
have tainted the real benefits of payday advance loan services. Yet, there are some
honest and reputable online payday advance companies on the internet. A good place
to start is the Better Business Bureau, or through a high volume third party site
that has customer testimonials of payday advances companies.
2. I'll never qualify for a payday advance loan with my bad credit
False. In fact most companies won't carry out credit checks at all, with only a
few doing so for informational and statistical purposes. The setup that exists for
paying back the loan is safe enough for the company that they don't need to be overly
concerned with a person's credit history.
3. I don't have a car or house to put against the loan
You do not need to put up collateral against the loan. With the loan repayment system
in place, payday advance companies usually need no further assurances or collateral
to give you an advance.
4. I don't have a bank account - no problem, right?
Unfortunately, this is a problem. You need to have a bank account to accept the
payday advance loan and also to pay the loan back. Without a bank account you will
not qualify for a payday advance, no matter your credit history or income.
Reputable payday advance companies offer a valuable service to those in need. Speedy
Cash for instance, has been in business since 1997 and is one of the largest and
most trusted financial service companies offering payday advances. The peace of
mind of knowing that payday advances are there to back you up may
even reduce the stress in your life without ever using one.