Payday advances are very popular nowadays. There are signs and store fronts on nearly every corner. When you type in “payday loans” in your Internet search engine, it pulls up over ten million results!
There are other names for payday advances, of which you might be familiar. They are called cash advance loans, post-dated check loans, check advance loans, and deferred deposit check loans.
No matter what you decide to call it, payday advances are all the same. They are short term loans in small amounts that are charged fees.
For those who need money now, those fees are often acceptable. It is the price we pay for the convenience. And who doesn’t like more convenience in their lives?
How They Work
The general procedure for getting a payday advance is usually the same, no matter how you get your loan and who you get it through. You will be asked to write a personal check that is payable to the lender at a future date that you both decide upon.
Some lenders even now let you opt to sign a pre-authorized bank withdrawal instead to make the process seamless. After you do this, the lender then gives you a check in the amount you wish to borrow.
The fees that are applied to payday advances vary depending on the lender. Most charge a percentage fee based on the amount you are borrowing.
Often, this percentage will be based on increments of the amount borrowed. For example, you might pay a certain percentage for every $50 or $100 you borrow. You will also pay more fess if you roll over the term of you loan.