Cash advance sites!

Discussion in 'Credit Talk' started by Paul, Sep 12, 2000.

  1. Paul

    Paul Guest

    Has any one ever used one of those cash advance sites where you need a checking account and they will loan you money till your next payday?
  2. Momofthree

    Momofthree Guest

    Personally I think this is a bad idea myself, you should never spend money before you have it, just my thoughts
  3. CardReport

    CardReport Guest

    Be very careful with sub-sub-prime lenders like this.

    The interest rates are *very* high, if calculated as an APR, although they might not *look* so bad, since the loans are only for a week or so. There may be high fees, too.

    Also, my understanding of their requirement for a checking account is that apparantly you have to give them a post-dated check. This is either used to pay off the loan on the scheduled day, and/or is held hostage, with the threat of them presenting it and nailing you for writing you a bad check.

    Although I notice you say, "sites." Are you talking about traditional store-front type facilities, or something online? If there is an online version of this sort of thing, I would guess that it would involve an ACH transfer to send you the money, and an ACH authorization from you to function like the post-dated check.

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  4. slan

    slan Guest

    I've taken out one of these payday loans before and it worked really well for me. (from a store, not online)

    The fee for $150 loan for 2 weeks was $25.00.
    That may average out to a high APR over a year, but it is less than the returned check fee from the bank.

    Very useful if you have an emergency expense thatyou weren't planning on.

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