Also commonly known as a paycheck advance, a paycheck loan is much like a payday loan in that it allows you to borrow a relatively small amount of money that you typically repay upon receiving your next paycheck. It's a quick loan that is approved primarily on the basis of your income, evidenced through previous paychecks.
Here are some facts about paycheck loans:
- The average amount offered by most of the paycheck lenders is usually from $300 to $500.
- A paycheck advanceis a short-term loan designed for a specific purpose- personal financial emergency.
- The paycheck loan should be repaid within the specified time period, usually on your next payday.
- A paycheck loan typically features no credit check which means that it also doesn't affect your credit scores.
Do keep in mind that failure to pay back the loan on the agreed date will cost you additional fees. Hence, it should be used responsibly to deal with temporary cash flow problems and should not be intended for long term usage.
Pay Advances, Salary Advance Loans and Paycheck Advance Loans - are these different?
The nomenclature is different as per local trends but essentially, all these options are the same. We term what we offer here, as our Paycheck Loans, simplifying it and avoiding confusions, but a salary advance loan, a payday advance, a payday cash advance, and many other terms also are used by various lenders. All terms are essentially used for the same product.