People with bad credit history can also get short-term cash loans up to $1500. The unsupportive credit history is not a hindrance in securing secure a personal paycheck cash advance. It is simple to apply for and is delivered within a few hours. So it is worthwhile understanding the complete process of the bad credit cash loans.
The Process Of Taking A Loan
The borrower shops around for a fast cash lending company by visiting their websites or offices. Finally, he selects a company which charges a lower interest rate and has clear and unambiguous terms. The application procedure involves providing simple details such as Social Security number, bank account numbers, employment details, etc. The approval is generally very fast. The borrower signs the legal agreement papers. He then writes a post-dated check for the day after his payday. The check amount includes the loan amount and lending charges. He normally receives the bad credit cash loan within few hours in his checking account.
Payment And Renewal
Suppose a borrower takes a $500 loan for two weeks at a cost of $15 per $100. So he gives a post-dated check of $575 to the lender. In terms of annual percentage rate (APR) his borrowing cost here will be 390%. However, he might renew the cash advance for another two weeks is a financial situation forces him to do so. This renewal is also known as "flipping" or "rolling-over" the loan. In some states, it is either not allowed or the number of renewals (roll-overs) are regulated. So it is always better for the borrower to find out the exact state law relevant in his state.
Using Cash Advance Safely
Prudence is never enough. It is better to go only for the minimum amount of bad credit cash loan so that it can be paid back comfortably. Falling into debt cycle by repeated renewal is a possibility that must be avoided. The borrower should know the exact time period of the loan as well as the rollover procedure and charges. The pay back procedure should also be clearly understood. It can be either through a post-dated check or by automatic withdrawal from the bank account.
The bank account must have sufficient funds at the time of pay back. If the check bounces, the borrower is inconvenienced in two ways. First, he has to pay bouncing check charges to the bank. Second, he risks intimidation of fraudulent legal action by the lending company.
