Electronic check payday advance
Friday, October 17th, 2008Most players in the cash advance industry charge around $20 as fees per $100 borrowed. There are some who charge far less than this amount if the borrower is a first-time applicant. They charge as little as $10 for every $100 borrowed. This comes as a special introductory offer for first time new customers on their first loan ONLY.
But then, there is a basic condition attached to this offer: the borrower has to repay the advance within the stipulated date. Once he or she applies for a renewal, the creditor charges interest as per regular, non-introductory rates for subsequent loans. As the interest fee is very low, the advance made is known as a electronic check payday advance . Usually the institutions give an advance of up to $1,000. Low-cost payday advance in general save a lot of time because approval is very fast, usually within minutes.
How does a low rates payday advance work? Once the application for the advance is approved, the borrower writes a post-dated check from his or her checking account for the principal plus the interest fee. For example, someone named Ann needs $100 in cash and approaches a creditor who charges $10 as interest for every $100. She has to write a post-dated check for $110 to the lender. The lender will get the check cashed, or withdraw the amount from Ann’s checking account by depositing Ann’s paycheck at her bank, or do an electronic transfer.
Though today’s competition in the cash advance industry has brought in cheap and affordable short term loan advance facilities, no qualifying payday advance should not be sought to solve long-term debt problems.