Choosing The Best Payday Loans AndCash Advances

Cash advances and payday loans are the most popular lending options offered to consumers. These two terms are often used as synonyms.

 

What Are Cash Advance and Payday Loan?

A cash advance can be received through a credit card service or a credit line offered by a financial institution. Payday loans are, as a rule, borrowed on a post-dated check cashed on borrowers’ upcoming payday.

 

Both payday and cashadvance loans are loans for a short time. The borrower pays a fee to receive the money. The loan can be borrowed for even a week or two. The borrower can ask for more time to pay the bills.The lenders must inform borrowersabout their rights, loan costs, rates, and fees. How do these loans work?

 

  • The borrower gives the lender a check for the amount he/she you needs to borrow(plus a fee).
  • The lender keeps the check and gives the borrower cash (less the fee they charge).
  • On the next payday, the borrower must pay the lender in cash. The money owed includes the amount borrowed and the fee.

 

The Costs of the Loans

Payday and cash advance loans can be quite expensive. Service members and their dependents are protected by law. The law puts limitations on the interest rates on payday loans.

 

Most loans require APR or an annual percentage rate. The latter implies how much it costs the borrowerto receive money for 1 year. The APR on payday and cash advance loans can be rather high.However, the APR on payday loans cannot go beyond 36%.

 

The annual percentage rate is based on:

 

  • The amount of money borrowed
  • The monthly finance charge or interest rate
  • The sum paid in fees
  • The time the money is borrowed for

 

How to Choose the Right Option?

To choose between a payday loan and a cash advance, you should find out:

  • The APR
  • The fees
  • How soon you must repay the amount
  • What will happen if you have difficulty repaying

 

With reliable loan providers like First American Merchant (FAM), merchants can get a cash advance to start and grow their business. Merchant cash advance from FAM can be approved for credit scores below 500. You can receive your funds within 72 hours from application. FAM provides simple and flexible programs for merchants of all types. No tax returns or financials are required.

 

If you don’t have enough resources to pay the lender the money owed, you can borrow the money for another 2 weeks. This is known as a “rollover” or “rolling over” the loan. For this, you mustpayanother fee. Rolling over the loan for several times, you must pay a lot to borrow the sum. However, it’ll become more difficult to return to the point you started.

 

Compare the pros and cons of both options and choose what is best for you.

 

 

How the Process of Applying for Cash in Advance Loans Works

Emergency financial problems can crop up any time due to various reasons. For instance, you need to pay urgent medical bills, tuition fees and utility bills. You can’t afford to delay the payments otherwise you will be faced with expensive late fees and this could mean spending more than necessary. In this case, cash in advance loans can save you. Over the years, many people took advantage of this loan because it allows them to get the money they need right when they need. Since cash advance loans are available at the time you need it, lenders also expect to repay or pay back the loan on the day you are due.

Many lenders today include this type of loan to their loan products to help those people who are short on cash but have to cover unforeseen expenses. To make it easier for borrowers to apply for cash loans, they provide online application form from their website where borrowers can easily fill it out. By applying for the loan online, you need not to fax some documents and this reduces the time you need to prepare for the documents. You simply need to provide the information asked by the lender and they will verify it electronically before they can approve your loan. This is how easy cash loans work when applying for it online.

Cash loans are provided to borrowers or a short period of time and so it is a type of short term lending. One can avail of a loan amount ranging from $100-$1500. The loan amount you can qualify for basically depends on your income. The loan amount will be deposited into your savings or checking account usually within 24 hours, sometimes sooner. These loans do not have fixed APR as it is decided depending on the amount of money you borrowed. Sometimes your credit score matters but there are many lenders out there who won’t require you to have good credit score to qualify for the loan.

You should be extra careful in deciding the loan amount that you are going to borrow since you need to pay the interest for the amount. It is advised to take the minimum amount you can adjust. You also have to repay for the cash in advance loans on your next payday. In case you fail to pay back the loan on the agreed term, you might be penalized but some lenders will allow you to extend the repayment term on the next payday.

It is then important to be able to have a clear idea not only the interest rates but on the penalties as well. There are many physical lenders as well as online lending companies that offer cash advance loans. The best option to be able to get the money you need transferred to your bank account directly is to go online and look for lenders that offer these cash loans. You can find a wide selection of lenders that offer these loans. Therefore you should go online and look for a suitable lender with terms and conditions that can satisfy you the most.

When you have already found the best lender for you, you can fill out the application right away and after giving them the information they need, they will verify it electronically. Things take place fast when you apply for this loan online. If the lender has seen that there is no problem with your application, immediately they will approve it and deposit your loan amount on your checking or savings account that you can get any time and use it to cover your expenses. Short term lending can offer great solution for your short term financial needs.

Cash Loans – A Form of Memory Test

When you find yourself constantly availing of cash loans, maybe you need to pause for a while and reconsider your spending habit. When you have been checking out some websites of lenders that offer payday loans online, maybe you need to re-evaluate yourself.

Maybe, just maybe, you are spending way too much. Maybe, you are taking your spending a notch higher even if your salary remains on a steady pace.

When you are getting cash loans one after another, maybe your need to re-check your memory bank. In a way, cash loans can be a test of memory. Let’s find out how:

1. It tests your memory on the basics of budgeting.

Everyone operates on a budget. Come payday, you are even surprised to find out that your salary is already consumed even though you’ve not spent a dime yet. You’ve allotted portions for bills and loans payment, and food and transportation allowance only, yet you feel that there’s nothing left for you to enjoy.

How come? How did this happen? Well, maybe, you are not heeding the basics of financial management. Maybe, you are going overboard your bills allowance – making thousands of international telephone calls, for instance – but you’ve allotted the usual minimum payment. A deficit will truly register.

Maybe, you are overspending, and under-budgeting. Yes, if you have been confronted with this kind of situation payday after payday, if you have been constantly availing of cash loans (such as payday loans in Canada), maybe you need to study financial management again. Truly, relying on memory recall alone has not worked excellently for you.

2. It tests your memory on simple math.

Computing the interest rates of cash loans is simple. You don’t have to a Certified Public Accountant to be good at this. You think that availing of cash loans is okay because the interest is just reasonable – given the ease and convenience associated with getting one. What you don’t know, is that when you really look at it, the interest rates imposed by quick loans lenders is huge.

Typical cash loans charge between 15% – 20% in interest rates. At the outset, it seems manageable. What is 15%? But if you really look at it, you get to pay up to $17.50 for every $100 borrowed, for instance. If you loan $300, then you are paying $52.50 just for interest alone. And when you total the principal and the finance charge (interest rates plus other charges), you are paying at least $352.50.That is enormous!

See, knowing how huge or how small your payables are does not take a degree in mathematics. It doesn’t even require a calculator for you to compute how much you should pay back in exchange for quick cash. So the next time that you think of getting a loan, have your calculator ready and compute first. Then see for yourself the interest rate is worth the hassle.

This is not to say, however, that getting cash loans is bad and that you should never avail of them. Instead, this implies that you should be more careful when deciding to get cash loans – or any kind of loan. The allure of quick and easy money may cloud your judgement. By thinking about how easy it is for you to get a loan, you forget about the fundamentals. You forget about interest rates and payment time.

Indeed, cash loans, in a way, test your memory. They subject you to the basic memory tests: simple match and simple financial management.

Loans Till Payday – Payday Loans and Cash Advance in Ontario, Canada
20 Eglinton Ave. East
Toronto, Ontario, Canada
M4P 1A9

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