Another one of the many names for cash
advances, a payday cash advance simply describes the source of the
repayment in its title. This article will discuss the process that comes
with applying for a payday cash advance and what steps you can take
to make sure that the repayment of this loan goes smoothly.
From the beginning...
Payday cash advances are secured against your next paycheck, which
is where the "payday" comes from in the name. In most cases
this form of an instant cash advance is issued once a consumer discovers
the need for an additional source of income after their current source
has been exhausted. Common uses include car repairs, medical expenses,
general household needs and even planned vacations. The nice thing about
cash advances of any kind is their versatility and relatively low cost,
which is emphasized by how easy they are to obtain over the internet
Repaying a Payday Cash Advance
Every cash advance company
is different, but generally the repayment of a cash advance is more
or less automatically completed after you give consent to disperse funds
from your checking or savings account. This is done using a personal
check that you write to the cash advance company (this method is favored
by physical locations) or by filling out an EFT (electronic funds transfer)
agreement online that gives permission for the issuing company to withdraw
the cash advance loan plus fees
from your account. A less frequent method involves using credit or debit
cards, but this is a tactic employed by novice cash advance companies
because cards are easier to process; the downside is that consumers
have the option to cancel the card the moment they walk out of the store,
which makes this form of cash advance repayment risky to the issuing
company and rare to the consumer.
Many consumers don't make the necessary financial arrangements to ensure
the smooth transfer of borrowed cash advance funds on the date that
they're scheduled, which leads to unnecessary surcharges and, at times,
unreasonable late fees. Here are a few steps you can take to make sure
the transfer your cash advance is repaid:
- Make a budget. Many people state the unusual circumstances surround
their need for a cash advance, so it might be a good idea to make
a special budget that walks you day by day to the repayment date.
This ensures that there are no surprise charges that pop up and cause
you to lack the funds necessary to make a full repayment.
- Talk to your spouse or anyone else that has the ability to access
your accounts. Sometimes people forget that a cash advance was issued
and are not as mindful of the funds in their bank account as they
- Cancel cards or checks that have gone missing. Some people use cash
advances to cover mysterious charges that appear on statements since
it's usually the policy of banks to refund the money after they've
confirmed that fraud was committed.
- Read your loan agreement with your cash advance provider and be
sure to ask questions, no matter how insignificant the detail may
appear. It's not uncommon for people to get confused during the whirlwind
of the process that is getting a cash advance, so sometimes details
get overlooked. Make sure you completely understand the inner-workings
of your personal cash advance
so you don't get caught up in unnecessary late fees!