Payday loans are very popular nowadays but customers often get confused by the great number of names they are also have. There are also concepts of cash advances and fast loan, and many others. However, the idea is the same and presupposes the following few points.
- Payday loans are short-term small unsecured loans that are given to a person for covering some immediate expenses. They do not presuppose having any collateral and sureties.
These small loans are given on the basis of a person’s income amount and do not depend on the state of a person’s credit report. They are supposed to be returned shortly on a due day that is agreed between a lender and a borrower. The common term is 2 weeks, a borrower is supposed to repay with the next paycheck.
- Payday loans, or cash advances have got the requirements to be obtained.
The majority of payday loans in the U.S. cannot exceed $1,000. Also, people having their income less than $1000 are often ineligible for these loans. Such cash advances are beneficial for customers who for some reasons are unable to get a regular loan from a bank.
- Cash advance is understood as a sum of money that a person gets against his or her next paycheck.
The distinctive feature of these loans is that they have very high interest rates and it can turn out even a worse trouble, provided that he or she hasn’t evaluated the financial potential realistically. The terms of payday loans and cash advances are used frequently, so one should not be confused when applying for this kind of personal loans.