Check Cash Advance – Loan Against Your Paycheck

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Check Cash Advance – Loan Against Your Paycheck

Check cash advance is a quick loan against your paycheck of a small amount that is tied to the size and timing of your regular paycheck. Loans applied for and approved for home, car and business usually run into thousands of dollars and involve longer periods of repayment. These check cash advance loans typically run less than two weeks since most people are paid every week or every two week and the lender wants to make sure they are repaid when your pay check arrives.

Personal loans can run as long as 5 years while mortgages run as long as 20, 25 or 30 years long. But a check cash advance loan is usually only for a few hundred dollars and the period or cycle of the loan depends on the date of your next payday. These are loans that can be arranged quickly to satisfy an immediate need and then repaid with the next paycheck that you receive.  You may have to provide a stub from your last pay check that shows how much you are paid after taxes and other deductions are subtracted  and also it will show the date of the last time you received a check.

What are Check Cash Loans Used For

These check cash advance loans will be used for emergency funds by many consumers. They may be needed to look after emergency repairs for a car for example, or perhaps the car needs to be fixed so that you can get back and forth to work, or there may be something special that is needed. Medical bills and prescriptions are another area that people will typically need emergency funds for. Whatever the need, these loans can really help consumers deal with these financial issues that they have.

The cost for a check cash advance loan against your paycheck is not large in terms of total cost, however the cost can be considered high when you compare the cost for this loan compared to a regular personal loan on an interest rate basis and fee basis. They meet an immediate need and they help people out, but they do cost a lot in terms of the actual interest rate. Still it may be worth this cost to solve whatever financial challenge that consumers have. Before you take the loan make sure that you fully understand all of the costs associated with the loan and your obligations for repayment. It is critical that you meet these terms and conditions to maintain your credit rating with the lender. Having an excellent record will ensure that you can always borrow money in the future with the same lender.

What are the Requirements for Check Cash Advance Loans Against Your Paycheck

Consumers need to be able to provide a copy of their last pay stub. This document is required to substantiate that they have a job with a company and to provide the amount of their regular paycheck. This will help to determine the amount of the loan they can be approved for and how long the loan should be approved for. Usually the date the loan is expected to be paid back is the day that the paycheck is received. If for some reason you cannot cash your check the day you receive it to repay your loan, make sure that your lender understands this and extends the date of repayment before you take the loan. Even being one day late repaying the loan is going to cost you more money in terms of late fees.

The other requirement that many lenders will have is that they need the applicant to have a valid bank account that is in their name. They prefer the pay check to be deposited into this account and they will transfer the proceeds of the loan into this same account. The loan payment or payments will also be withdrawn from this account on the day the account is due. This preferred approach is much easier for everyone. If you have electronic funds transfer enabled for your paycheck, it will automatically be deposited for you by the company you work for and will be available on the day you are supposed to get paid. Your lender can withdraw the funds or you can initiate an EFT to the lender to ensure that you meet the terms of the loan.

The account statement from the last regular statement should show the date or dates of your paycheck deposits.  Lenders also look for other information on bank statements. One of the things they look for are records of payments made to other businesses when there were insufficient funds in the account. This can be a clear indication of a financial cash flow situation that they will want to discuss with the borrower. Checks not cleared due to insufficient funds usually cost the account owner a lot of money. The bank levies a fee for processing and whoever the money was to go to, will also levy a fee for processing. It can get quite expensive when there is not enough money in an account to pay your bills.

Borrowers should always try to avoid being in a situation where there are not enough funds in the bank account to pay for all of the checks they may have written to avoid the extra fees that banks will charge when there are insufficient funds in the account. When your check cash advance loan is due to be repaid, consumers should always try to make sure that they have sufficient funds to repay their loans.

Your check cash advance loan may be used to avoid other bills from insufficient funds in your account. It might be cheaper and less expensive to take out a loan rather than risk not having enough money in your account. Borrowers must ensure that they have left sufficient time to apply for the loan, for the lender to review the loan application, approve the loan and then forward the money in time to meet your cash flow needs. If you feel that you are going to run short of cash in your account and have no way of meeting the cash flow needs, you will want to apply early for your loan. Applying early can actually save you money and also avoid your credit rating being affected as well. Managing your cash flow is one of the most important things you can do to avoid extra costs and to maintain your credit rating.