Posts from — March 2009

Are you familiar with something called a payday loan? These go by a wide variety of names, such as a cash advance loan, a payday advance loan, a quick cash loan, and several others. Although the names are different, the end result of this type of loan and the bottom line is that you can get a loan quickly without credit checks.

But let’s dig a little deeper into this and find out more about a payday loan, since there are some entries in the “disadvantages” column as well as the “advantages” column.

On the plus side, a payday loan is very easy to get. As long as you have a steady and reliable source of income that can be verified via paycheck stubs and you can produce a valid form of identification such as a driver’s license, you can get a payday loan. There is usually no credit check performed, so this is not dependent on your credit score, which makes a payday loan an excellent financial vehicle for those who have bad credit.

But there is a down side. A payday loan is a short term loan and is designed to be paid back in full on your next payday; hence the name “payday loan”. It is not designed to be a long term loan where you can stretch out the payments over a year or two. In most circumstances, you can wait until two paydays from today to get the loan paid back, but you are going to pay hefty interest rates for that privilege.

In almost all cases, you can get your payday loan within a matter of hours, and if you need the cash right away for an emergency or something very special, this type of loan can really help you out. Yes you could save a bunch of money by using your bank or credit union or a private lender to get a loan, but then you will almost certainly be faced with a credit check, and then waiting several days to a week before you get your money, at which time if you have bad credit, you may get turned down anyway.

As long as you are aware that the money needs to be paid back on your next payday, a payday loan or cash advance loan can be just what you need to get over this emergency or special item that you need the cash for, right now today.