An online cash advance is a small short term loan which is covered by the borrower's next pay packet. |
These loans are fast and easy to process and do not normally require a credit check. This makes them suitable for someone in need of credit quickly, and may not meet the necessary requirements set by traditional lending institutions.
In your search for a payday loans online there are number of factors you should consider which could greatly affect the amount, cost and ease of credit offered by the loan.
These factors include:
The Borrowing Limits
Payday lenders impose certain limits to the amount that they are able to loan to prospective borrowers. These limits can vary from one lender to another therefore it is important to consider the minimum and maximum borrowing limits imposed by your prospective lender to determine whether they are able to cater to your borrowing needs.
Repayment Period - The normal repayment periods set by lenders range between 2 weeks to one month. You should consider the intervals in between your payday to make the best choice of short term loan. You should also confirm the rules that govern any fines or charges in the event of default, just to make sure you can meet such expenses in the future.
The Application Process - In the application process most payday loans online lenders will require a number of documents. These documents may include proof of income/employment, proof of your name and address and proof of your bank account etc. You should confirm that you have all this documents before making your no credit check payday loans application.
Fees and Charges - The fees for payday loans can vary from one lender to another. They are usually charged as a flat fee per 100 pounds lent, such as 10 pounds per 100 pounds. You should look around for the lowest possible fee for lower cost of borrowing.
Roll over flexibility - Since there is a chance that you might default on your payments at some time in the future it would be wise to select a lender that allows you 'roll over' or 'extend' your loan to the following month. You should bear in mind though that you are likely to accrue more interest charges in the event that you default.
Mode of Payment - Different lenders accommodate for different types of payment methods such as postdated cheque, standing orders, or a direct debit into the lenders account. You should check the repayment method set by your prospective lender and confirm that you are able to comply with these instructions.
Method and Speed of Transfer - Payday lenders use a variety of methods to pay prospective borrowers such as hard cash, a direct transfer to your account etc., which can determine how soon you can have access to the money. You should select a payday lender that suits your monetary needs best.
Payday loans are a great convenience to have especially when faced with short term liquidity concerns, such as medical emergencies, house bills and the like but you should always consider the above named factors in your selection process to make the best of your payday loan.
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