Cash Advance Service - The Actual Story
byon 06-27-2012 at 04:24 AM (195 Views)
"A money advance is typically known as a payday loan because it often secures a persons finances even though they are in amongst paychecks. It is a short-term loan, frequently an advance on a paycheck, that does not call for a credit check and rarely succeeds $500. A money advance is a very convenient loan for folks who need to have cash, typically cash, instantaneously and maybe have negative credit or no credit. Normally the borrower will immediately write a post-dated check for the amount of the loan and accrued interest, to be held by a money advance service until the date of maturity (the borrowers next payday). When the loan matures, the cash advance service then processes the check ordinarily or withdraws the payment directly from the borrowers checking account.
A cash advance service operates much like a credit card service in that if the borrower cannot afford the loan amount and interest at the time of maturity, they have the choice of paying a fee to extend the loan (or refinance it). The fee grows exponentially every time the loan is refinanced.
Payday lenders, as well as larger, far more conventional banks, provide various cash advance services. Even so, considerably controversy surrounds these services, which critics say exploit the poor, needy, and young, enticing them with loans that merely imprison them in debt by way of high interest rates and refinancing fees. Although a money advance may possibly benefit an individual who is temporarily unable to pay their bills or purchase groceries and would not be in a position to get the essential funds otherwise, such loans may not be in everyones best interest. The controversy over cash advance services is so fantastic that payday lending is illegal in twenty-five states in the United States. Therefore, many payday lenders ought to coordinate with banks outside their state to offer money advances to customers. cash loan"