Paycheck advance loan is a blessing in disguise for sure. It is a sure shot solution for people who need cash urgently. If the borrower meets the requirements, he can get an approval within minutes. In fact, this loan process is so convenient that the customer does not have to fax any documents to the lender or the lending institution. It also does not matter whether the borrower has bad credit or does not have any credit at all.
Advantages
Apart from the quick and simple loan process, there is also no need to show any documents before getting approval for this loan. The paycheck advance loans, as the name suggests, are emergency personal loans that customers can take in cases of emergency or otherwise before they receive their paychecks. These emergencies can include paying an unforeseen medical expense, paying the school fee of a child, emergency car repairs, or going on a short trip.
What is more, these loans are safe and secure and mostly have a high approval rate. The pay advance online should be repaid on the due date or the payday of the borrower. If he gets a salary more than once in a month, there are other payment options available. These are short term loans to help the clients with a pressing need. All payments can be made online. There is no need for the customers to leave the privacy of their homes to make payments. In fact, the customers can be assured that their personal information would be kept confidential.
Savings Account
All the companies require the customers to have a bank account as an eligibility criterion for this loan. However, there are some companies which provide loans to customers who do not have a checking account. They can apply for this loan even if they have a savings account.
However, they need to check with their banks first as some of the banks do not allow crediting and debiting of a savings account.
A paycheck advance loan has certain disadvantages also. Some critics are of the view that this loan exploits people’s financial hardship for a profit. They say that these loans target youngsters and poor who do not understand the ‘debt cycle’ they are entering. This target group is not aware that the high rates of interest charged on these loans are almost impossible to repay. However, the lenders defend themselves by asserting that they do not have any hidden charges and that it’s the customers’ responsibility to read the offer documents carefully before signing them.