Why So Many Opt for a Paycheck AdvanceEconomy Saturday, July 21st, 2012
A paycheck advance loan is an option that nearly everyone has. It is one of the most available loans, and probably the easiest to qualify for. These short term loans are becoming more popular for consumers with limited credit, or those who simply don’t want to be bothered with the procedures of applying for a loan from a bank.
The main advantage a paycheck advance loan has is that eligibility is not based on credit. Most lenders do not run credit checks on their applicants. The most important eligibility factor is that the applicant is employed and receiving a regular paycheck via direct deposit. The other thing that makes a paycheck loan so attractive is that the cash is usually available the same day, provided the applicant is approved.
As you can imagine, a loan that is so easy and fast to get is very attractive. Most lenders know that the majority of their clients do not use the loan in the same way that consumers use credit cards. Paycheck advance loans are not usually used for a shopping spree or vacation. They are usually used to cover an unexpected emergency or expense. In these times of crisis people look to paycheck advance lenders for a loan that is fast and easy to obtain.
Unlike a bank loan, there are very few stipulations on how a paycheck advance loan can be spent. Once the loan is obtained is the same as cash in the consumer’s pocket. It can be used to fix a car, pay a hospital bill, take a timely trip, or pay urgent bills. It is up to the borrower’s discretion as to how the loan is used.
For the most part these loans are micro loans, and short term. They carry a higher interest rate, but if paid as scheduled the interest is really more of a small fee. Interest rates, loan durations and amounts vary from state to state and country to country.
The industry is now online, and consumers in need of a paycheck advance loan can find a reputable lender online, for example www.jrfinance.com, from the comfort of their sofa, any time of the day or night. Some lenders do require some documentation, like bank statements and pay stubs that can be faxed or emailed. The industry has catered to the consumer and made these loans an easy option for anyone working adult in need of fast cash.