 | A payday advance, also know as a cash advance, salary advance or paycheque advance, is a small- typically between around £80 and £100, some companies can go upto £1,000+ dependant on your salary- short term loan which is intended to bridge the gap between wages and cover unexpected expenses. Note that the term cash advance can also mean withdrawing cash against a previously arranged line of credit such as a credit card. In this instance, it is simply the practice of making some of your pay accessible at an earlier date for a fee. When hit by an unexpected bill between wages such as a car breakdown or household repair, you may find yourself backed into a financial corner, especially if your budget is tight and every penny accounted for after each wage is paid into your account. A payday advance may be a good last resort in this instance and is actually quite popular with the working middle class for a number of reasons:
There is no credit check. People with CCJs, defaulters, bankrupts, those with arrears or other bad credit can therefore qualify for a payday advance. It's fast. Upon applying for a payday advance- often nowadays online- the money will be deposited into a nominated bank account within 24 hours and most often the same day. This is of course quite essential, as due to the nature of this type of loan, it is often needed immediately to bridge that wage gap. It's discreet. Cash advance customers have not had to discuss their situation with their banks or credit providers and as there is no credit check, there is no credit rating impact either.
When applying for a payday advance, you will normally be expected to have been employed for at least three months, be over 18, and the bank account that the advance will be paid into will normally have to be the one into which your salary is paid. (You may be required to provide evidence of this.) The repayment date is then set for between normally 7 and 14 days (most often the date of your next payday) and the fee arranged. On your next payday, the advance plus the fee are paid back and you’re all clear. Simple! Payday advance are a good one-off last resort for a lot of people, but one thing in particular to be mindful of if you're considering this particular stop-gap is once you have agreed your repayment date, make sure you stick to it. Fees can be reasonable if you pay back on time, but be wary of offers of an extension to the date, they often come at a hefty price. It is always best with this type of loan to pay the whole amount back on time, in full, with your next wage. Shop around for a lender for this type of loan just as with any other. Lenders vary enormously with fees and ease of application, but it should be fairly quick and simple to find one to suit you whose terms you agree with and who will get you your money when you need it. |
