The payday loans industry gets criticized often for what it does: providing cash advance services to people who need money in a hurry. But thorough, objective reviews of legitimate companies in the industry by both the media and legislators have found that cash advance loans are a good, manageable proposition for consumers. This holds true for professionals in Massachusetts and Illinois as well as for service and manufacturing workers in Texas, Washington, Arizona and North Carolina. Payday cash advance loans help them deal with the timing challenges of household finance in ways that no other type of financial institution is able to do.
Of course, it’s possible to mismanage this type of loan. Here are four tips for using a cash advance loan:
- Check your loan limits – A payday cash advance is meant to be a short-term loan of modest amounts. The limits are set by state banking regulations as well as how the lender views your ability to repay, which is largely determined by your income level (but not your credit score).
- Apply online – By far, online payday cash advance loans are more efficiently transacted than through bricks-and-mortar retail stores. The time involvement alone is worth it, as well as the ability to find the best lender for you instead of the one that just happens to be near your home or work.
- Pay the most difficult bills – Cash advances are clearly not for unnecessary purchases. Instead, pay the bills that would carry the heaviest penalties if otherwise paid late.
- Pay the loan back as quickly as possible – Costs for transacting payday cash advances are tied to the time period of the loan. Work out ways, if possible, to pay it back on the next payday or two paydays at the most.
There is no shame in coming up short on bill paying in a tough economy – particularly if it was an emergency expense that threw you into that position in the first place. The real test of character is managing the situation as it presents itself. A cash advance loan can be the smartest approach – when you manage it intelligently.