When you are in a financial crisis, a payday loan may be an appealing option. However, before making this decision, you should weigh your options carefully to ensure that it will not create more money issues. First of all, you should determine exactly how much money is required to handle your financial situation. If it is only $200, that is all you should borrow, even if you are approved for more.
The second factor you should consider is if you will be able to pay the loan back in a timely manner. If you are not going to be able to pay by the agreed upon date, you may need to seek financial assistance elsewhere. Although most payday advances allow you to extend the due date of the loan, doing so creates fees and penalties that are added on to the balance you owe. If left unpaid, this debt can become overwhelming and cause you more financial stress.
You should not get the wrong idea about payday loans, they are meant to help those who find themselves in financial emergencies or cases of unexpected expenses. The intended purpose of these advances are to be short term loans to an immediate cash issue. Understanding exactly how they work is also important to determining if you really need a payday loan.
In order to qualify for a cash advance you must be at least 18 years of age, be employed and have an open and active bank account. Once you meet the preliminary requirements, you must then have your credit evaluated by the lending agency. If your credit is approved, you will receive a list of borrowing options from various lenders. You choose the best loan for your situation and write a check for the agreed upon terms. The check is deposited by the lending agency on the agreed upon date. If this process goes as planned, you will have no additional expenses and be able to take care of your immediate financial issues.