A Tool for the Modern Consumer
Get Educated on How Cash Advance Loans Have Changed
You’ve probably heard of a payday loan as a way to cover the gaps between paychecks. But if you find yourself short of cash, you might be hesitant to think of it as a valid tool for your situation. If you’ve heard bad things about cash advance loans, chances are you are getting old or even false information. The truth is, quick-turnaround loans have changed a lot in recent years.
Rethinking Quick Cash Loans
Because they have sometimes been misused by consumers, and at times offered by less than reputable lending companies, payday loans have gained a bad reputation—a last chance tool of the financially desperate. But times are changing. And more and more people are realizing that quick cash loans have become an acceptable option for all modern consumers.
It’s smart to think of these short-term cash advances as personal bridge loans—because that’s essentially what they are. You are borrowing from your future self with the help of an intermediary. The lending company covers your cash shortage for a short period of time—usually until your next payday––and then you pay them back. You’ll pay a flat finance fee when you accept the loan, but this is all done up front, and if you pay on time the contract ends when you make payment. No strings attached. No tricks. No ongoing commitment.
Take Advantage of Technology
Many of the consumer protection advancements have come about because of technological changes. Online banking has helped minimize the pitfalls that consumers used to fall into. You can still apply for a loan at a storefront location, but you can also do so from your personal computer, giving you many advantages.
For one, you can comparison shop. Being online means you can quickly search for fast cash lenders, compare their rates—and most importantly—check their credentials in the lending community, such as proper state and federal licensing, Better Business Bureau endorsements, Chamber of Commerce membership, etc. Perhaps even more pertinent, you’ll be able to read reviews from other consumers. If other clients have had bad experiences, you’ll know about it.
Online lending also gives you the options of direct deposit and automatic withdrawal. If you are approved for a loan, the cash will be deposited directly into your bank account. You can withdraw it from your personal bank or any ATM. When you set up direct deposit, you can also set up an automatic withdraw. So if your loan is due on your next payday, the money can be withdrawn when it’s due, helping you avoid late fees. This also helps you avoid the mistake of spending your money on something else before you remember to pay your loan.
Be Realistic About Your Financial Needs
If you know upfront that it may take you two or three paychecks to pay back the money, let your lender know. Many of them will structure a multi-week loan so that you still have money to cover your ongoing expenses while paying back your loan. You may pay more in financing fees, but it will likely be less than paying fines for insufficient funds or late fees.
If you’re worried about the pitfalls of quick cash loans, put your worries to rest. Find a reputable lender, be honest about your ability to pay and set up a lending structure that works for each of you. Then have your payment automatically withdrawn each payday the loan is active. If you take these steps to protect yourself, a payday loan is a convenient and easy way to get through life’s emergencies.