If you are looking to get a payday advance, then there are quite a few things that you need to know before proceeding. To help you get a better handle on how these loans work, here is an overview and some tips:
What are payday advances?
Also known as payday loans or cash advances, these loans have very high interest rates and generally have very specific mechanisms for how they are repaid. When you get a payday advance, you will usually write a check to the lender that will be cashed in on your next payday. This ensures that the lender will get their money back and that you won't forget to repay the loan. Of course, the obvious problem that can arise is that you might not have enough money in your bank account to cover your check on your next payday. If that happens, then you will need to pay the loan back on your next payday with some additional interest.
Are they the same everywhere?
One of the most important things to know about payday advances is that they vary greatly from state to state. Each state has its own laws about interest rates, and some even have specific laws about the repayment of payday advances. Therefore, you want to look into your state's laws before you sign up for anything, especially if you are browsing online. Sites may seem pretty reputable, but they might be offering illegal rates or terms of repayment.
Can you use multiple payday advances at once?
The short answer is no. The long answer is that it is illegal to use a single payday as the basis for multiple payday advances. Aside from being easy to exploit on your end (you could potentially take a variety of cash advances against a single payday with no intention to pay any of them back), such a situation could leave you massively in debt. Taking one payday advance has high interest rates on its own, but multiple loans can be financially devastating.
How should one use a payday advance?
If you have no other choice, then a payday advance can be a very useful tool. All you need to do is plan ahead and make sure that you have the financial means to bear the high interest rates. Don't take more money than you need, and make sure to repay the advance as quickly as possible.