Advance Payday Service

If you ever find yourself short on money you may want to think about an advance payday loan.  When we think of loans usually we think of dozens of pages of documents, a long approval process, long term payments and a lot of paperwork.

Advance payday loans offer someone an opportunity to borrow money against their next paycheck.  This advance payday service can come in very handy when you’re in a bind.  The idea is simple.  You visit one of the offices that have advance payday loans.  You must bring with you at least two pieces of identification along with several records of your pay. 

Most businesses that offer the advance payday loans give you a maximum of $500.  The borrower then writes a post dated check for the date of their next payday in the amount of the loan plus the interest which is the fee.  An example would be if a client borrowed $300 then they may be required to write a check for $360 for their next payday - this is how the payday loan companies make their money.

When the date of their next pay day arrives the $360 check is deposited.  Writing a check is not the only form of repayment used.  Some of these companies that offer advance payday loans will have you sign a document which allows them to electronically withdraw the amount from your checking account.  Many companies are using this repayment method  because it’s quicker and also more secure than depositing your check and waiting for it to clear.

However, in some cases, if the borrower is still feeling the pinch of being short on money, they can refinance the advance payday loan on the day the payment is due.  In this case the borrower pays a fee, which varies from lender to lender, to extend the loan until their next paycheck.  Interest accumulates and they are then facing a higher payment because of the accumulation of even more interest for the extended time period.

One of the most appealing things about advance payday loans for some people is that there is no credit check involved.  For someone who has struggled or is currently struggling with their credit history they aren’t going to want to visit a traditional lender to inquire about short term loans.  One of the features that you may want to look into is if the service offers payday loans using savings account only.

Advance payday loans are gaining in popularity and are legal in Canada as well as in certain regions of the United States.  Although traditionally advance payday loans were offered from check cashing companies, some banks are now seeing the value in the service and offering it to their customers as well.  This is good for those who are looking for payday loans that don’t use telecheck.

Although the interest rate on the advance payday loan may be huge its a quick and easy fix to a short term cash shortage.