How do Cash Advance Payday Loans Work?

Understanding Cash Advance Payday Loans

Several lenders can offer you a loan without the need for you to go through a credit check. A cash advance loan is one of these loans. Before taking this kind of loan, you have to understand how it really works.

Cash advance loan is a type of short term loan that can give you quick access to cash. It is best for people who are not financially ready when emergency situations occur and for those who cannot take out a loan from traditional lenders because of poor credit.

Despite of its accessibility and ease in application, this type of loan come with high interest charges. Aside from the interest, it also charges high fees. On the average, cash advance loans charge $15 in fees for every $100 borrowed. As such, you have to find other

English: Cash Money Payday Advance Outlet on Y...

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means to obtain money if you think that you will not be able to afford repaying the loan.
Cash advance payday lenders are numerous. You can find it almost anywhere. If you want your application to be convenient, then you can go online and look for a lender there. As a recommendation, opt for an online network.

An online network of payday loans connects with 50 lenders competing in the business. When you apply through them, you can get the best rates because the lenders will try to make sure that you choose them by offering you the best deal. You only need to send your application online and then you will easily get the approval that you need.

To qualify for a cash advance loan, you must be at least 18 years of age. You must also be working during the time of your application. Oftentimes, the lender will only approve you if you earn at least $800 a month. Moreover, you need to have a bank account where the money can be deposited.

Once you get approved of your application, you can get a loan amounting from $300 to $1500 no matter what your credit rating is. The best part is, you can obtain this as quickly as 24 hours after submission of your application.

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Better Choice Payday Loan: A Better Alternative to Pennsylvanians

Rob McCord, Pennsylvania State Treasurer is continuously admiring a payday loan program of a credit union. This program has been reported to save its members worth $15 million.

The $125 million Cross Valley Federal Credit Union was visited by Rob McCord to find out about its Credit Union Better Choice program. According to the Treasury Department of Pennsylvania, this program was said to have given assistance to three women who were faced with unexpected expenses. This Wilkes-Barre, Pa.- based credit union has been reported to have issued around 280 Better Choice payday loans to about 101 of its members since the year 2007.

Better Choice Payday loan was launched in 2006 through a joint venture between Pennsylvania Credit Union Association and the state. Since then, the participating credit unions was said to have made about 43,000 Better Choice loans that amounted to a total of $20.5 million.

Officials said that the loans have given its members a total savings that amounted to $15 million. This cost includes fees especially interest charges that goes with most payday lending products. Better Choice Payday Loan is available at about 79 credit unions in almost 222 Pennsylvania locations.

Mc Cord said that the Better Choice Program is especially designed for people who seek payday lenders because of economic struggles that lead to difficulties in making ends meet. He adds that this program is a better option for these people.

The President and Chief Executive officer of Cross Valley FCU, Edward Kaushas, said that the decision to offer the loan came easily. Their company is happy to know that the program is able to reach out to many people and make a big impact in their lives and in their families.

The typical charge for a $500 payday loan is about $15 for every $100 that is borrowed in a two week period. For a 90-day period, the fees for the same loan will reach about $450. However, in the Better Choice program, the cost of this type of loan for a 90 day period is about $42.50. By the end of the loan period, the borrowers save about $50.

Mc Cord highly spoke about the Better Choice payday loan program. He said that this helps Pennsylvanians expand their dollars for emergency needs without falling into bad debt that most traditional lenders may create.

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Payday Loans Continue for Kentucky Borrowers

Borrowers in debt look for other options as other lenders support the end of payday loan rate restrictions in assembly. Consumers in Kentucky want to open all their options in the decisions they make. This includes choosing the best financial product that will fit them and their circumstances.

In the General Assembly’s recent session, self-appointed activists removed the option of payday loans for consumers by pushing a bill to remove payday lenders from the state. Luckily, there are many bipartisan free-market advocates that can overpower this consumer rights violation. However, the activists plan to come back and submit the same bill in the coming year.

Efforts given to put an annual limit to payday loan percentage rates are caused by the lack of understanding of the product. This is also pursued by organizations that are funded by payday loan competitors.

Payday loans are one-time payment, fee-based loans. The law of Kentucky particularly forbids the charging of interest by payday lenders. Its opponents describe it untruthfully to give legislators and the public the impression that payday loan borrowers are charged high interest rates, late fees, rollover charges and other forms of charges that are prohibited in Kentucky. But the truth is that payday lenders inform their customers of the real terms of their loan. Once they obtain a loan, the customers know how much they owe by the time the payment period ends.

Payday lending opponents in the state of Kentucky includes CLOUT, KCRL and AARP. All three are competitors of payday lenders. CLOUT and KCRL are mostly funded by banks and credit unions that compete with payday lenders in the short-term credit market.

A payday loan may not be the best alternative to obtain emergency money. But, it can still be the least costly option for some consumers for many families. Hence, the choice must be left for consumers to make and not for legislature or activists.

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Payday Loan Online with Proof of Income

A new company joining the cash advance industry is Payday Loan Buff. This company is providing payday loans to consumers who can apply for loan online by only showing a proof of income. The company announced lately that they plan to put up a base that will operate in South America. A licensing agreement is being set so that Payday Loan Buff can start an office to operate in Northern Mexico.

According to their CEO, part of the company’s plan for expansion is to start with some countries in South America. He further added that the company is lucky to find a partner that allows them to get a license to operate in the whole country of Mexico. This is a way to gain access to many consumers that have been experiencing tremendous financial challenges. The easy way to obtain cash advances is the company’s goal to help their consumers improve their lives little by little.

Payday Loan Buff’s partnership with Mexicans will be directed by a number of local businessmen and businesswomen. These entrepreneurs personally approached the company after seeing a press release of the company’s intention to operate in their region. This group of entrepreneurs is more aware of the potential consumers in their area. Because of this, they can represent the company in the best way possible. Also, they can keep local customs economics in the frontline.

The plans of the company include website development and training for the Mexican team. Aside from this, the company aims to oversee management. This is to ensure that the policies that have been set by the company are being practiced in the new site. Ownership of the operations will still be given to the company but license of the operations will be placed in the hands of the group of entrepreneurs. The group of businessman and businesswoman will take the daily responsibility of handling the operations.

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