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You are here: Home / Finance / Payday Cash Advances: The Alternative to Secured Loans

Payday Cash Advances: The Alternative to Secured Loans

Last updated on August 12, 2011 By AllTheArticles Leave a Comment

Imagine yourself in this scenario: You’ve over extended your credit cards and the companies are howling for payment. Your employer just cut your hourly pay by ten percent. Your car needs repairs like yesterday. It’s another full week and a half until payday. If you haven’t already, it’s time to think about payday cash advances.

 

Secured Loans vs. Unsecured Loans

Particularly if your credit is not so great, getting a secured loan can be difficult. Because they require that you put up some collateral (your car, your home or other assets), if you default on the loan, the asset belongs to the lender.

 

Of course a secured loan has the advantages of allowing you to borrow more money and at a lower rate of interest simply because your repayment is secured with the asset you pledged. On the down side, a secured loan can take a while to be improved, at least several days and sometimes a couple of weeks.

 

Unsecured loans, such as payday cash advances, are usually for less money, commonly up to $1500. Their interest rates are higher and they must be repaid in a shorter period of time. However, there is no risk of losing your property because the loan is secured only by your promise to repay it.

 

Payday loans have the advantage of nearly instantaneous approval, no credit check and you can have your money in as little as 24 hours. Repayment is often automatic through the bank account so you do have to make certain you have money in the bank on the designated day. If not, you will probably face a hefty late fee.

 

How Do You Choose?

Both secured and unsecured loans have their place. If you need more than $1500, can wait a while to get your loan approved and are okay with pledging your home or car as collateral, a secured loan may be your best answer. You’ll get a lower interest rate and a longer period of time to repay the loan.

 

If on the other hand you need $1500 or less but you need it in a hurry, payday cash advances are worth looking at. You can apply online in minutes, get approved in minutes and have the money you need in as little as 24 hours. Yes, you will pay a higher interest rate and you don’t have as long to repay the loan.

Payday cash advances

24 hours

Filed Under: Finance

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