Paycheck advance is a short-term loan, for the period between two and four weeks, that is intended to cover a borrower's emergency expenses until their next payday. Paycheck advance provides a quick cash loan with minimum requirements to fulfill. The loans are popular among people who have bad credit history as there is no credit check involved as part of loan qualification process.
The loan amount for a paycheck advance loan is small between $100 and $1000. There are some paycheck lenders who are willing to lend you over $1000 with some additional requirements. Finance charges on paycheck advance loans are normally in the range between $15 and $20 per $100 borrowed, which may seem higher than typical credit cards and bank loans. However, paycheck lenders argue that their operating cost and risk of giving loans are much higher than that of bank loans.
Requirements for a Paycheck Advance Loan
Paycheck advance loan comes under several names such as payday loan, cash advance, or postdated check loan. When you search for a loan under those names you basically refer to getting an advance loan until your payday. The requirements for the loans are not complicated. You simply need to meet some qualifications which include:
- You must be over 18 years old
- You must be currently employed
- You must be paid on a regular basis
Some lenders demand that you must be at the same job for at least three months with minimum salary varied from lender to lender.
Applying Online is Easy
You basically have two options as to how you obtain the loan. You can either drive to a local paycheck lender shop or simply visit a lender's website online to apply for the loan. Applying online saves you time and money and gives you opportunities to shop around and compare several online paycheck loan lenders to find the best offer in terms of interest rate, approval time, repayment scheme, etc.
With online paycheck advance loan you simply need to complete an online application form with all your details, including your phone number, social security number, driver's license, employer's name, references, and more importantly your bank account. It takes less than 7 minutes to complete the form.
If your loan application is approved, the lender will transfer the money directly into your bank account right away. When the loan is due the lender will automatically deduct your bank account for the repayment amount plus interest and any fees.