Is The Instant Payday Loan Too Good To Be True
Doug Smith

Defined Tag: Instant Payday Loan.

An instant payday loan is a type of cash advance loan that offers you quick cash in exchange for your next paycheck. These loans are good for emergency cash, especially if you need it now and cannot get money anywhere else. By applying for an instant loan, you agree to pay it back on your next payday. It is like a cash advance on your salary.

These instant payday cash advances don't grow on trees, however. You do have to meet some requirements before the loan can be approved, and you will sign a legal document promising to repay the money, plus interest. Yes, there will be interest charged on the loan, and it will likely be higher than typical interest on a bank loan or mortgage. Payday lenders will get you money fast, but you will pay more for the convenience. However, if you cannot meet the minimum requirements, you will probably not be approved for your instant cash advance.

First, you will need to be of legal age to enter into a binding contract. This is an actual loan, even though you are not getting it through a bank or credit union. The difference is that the loan payback period is very short, usually one to three weeks, or whenever you are scheduled to get your next paycheck.

You will need to show a history of regular employment as one of the conditions of getting an instant loan. If you have an employment contract or agreement, or pay sheets, checks or stubs from a long period of time, or even a letter from your employer, then you can satisfy this requirement.

Regular income must be proven in order to be approved for a quick payday cash advance. If you have a regular, steady job, then proving the income should not be difficult. The proof might take the form of a bank statement showing regular direct deposits from your employer, a series of pay stubs from your paychecks, or perhaps your company's accounting office can verify in writing that you receive regular checks, and for how much.

The amount of cash you can borrow is relatively small. It varies between $800 and $1200 USD (U.S. Dollars), depending on which state you are in. If the cash you need instantly is significantly higher than that, perhaps this is not a good option for you.

Interest rates will apply if you are approved for an instant loan. They are typically much higher than typical bank or mortgage loan rates, and will probably be in double figures. However, you need to recognize that the payday lending store is not only trying to cover its risk, it is also charging a premium for this instant cash convenience.

If you meet all the criteria and submit an application, you should know almost, well, instantly if you are approved. If so, the cash payment will occur at that time. Don't get too comfortable with the concept on instant money, however. Remember that it has to be paid back when your next paycheck is due! Before applying for an instant cash advance, consider whether you will have enough money coming in on your next scheduled payday to pay for this loan. Used responsibly, however, an instant payday loan offers a quick approval loan that you probably cannot get elsewhere.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. Not Professional Advice.