Cash Advances Vs Fast Payday Loan

Cash Advances Vs Fast Payday Loan

Cash Advances Vs Fast Payday Loan

Payday loans are often meant to serve an emergency purpose for people who run short of finances until their next pay check. Anyone with a valid identity proof, a valid address proof or a valid age limit can apply for such payday loans. Above all, these payday loans are free of credit check and no credit check is done on them and hence people with bad credits find it a suitable way to rebuild their credit.

Fast payday loan is hence an insure loan type meaning that there is no collateral and usually no credit check required for approval. These are granted based on an individual’s income and are designed to be paid back on a specified date with a very high interest rate. An online payday loan additionally require that one has a bank account with a strong standing because the money is transferred directly into the individual’s bank account.

On the other hand the concept of cash advance is a bit similar but these are a secure way of taking out loans. These usually refer to advancement on the individual’s pay check. This type of cash advance is structured the same way as a payday loan but with a slight modification. These are often based on a credit card or line of credit or on the individual’s available credit limit on a credit card rather than an individual’s monthly income. These cash advances come with a smaller rate of interest than payday loans. The lenders in a payday loan has a much higher risk of non payment of the debt, so they charge higher rate of interest.