Many people think about online cash advance loans as the last resort for those who suffer from financial breakdown. While this can be true to some extent, this is not completely the case. According to a research conducted by the Personal Money Market, an average payday loan customer earns somewhere between $20,000 and $50,000 annually. Hence, payday loans are for all those who are in immediate need of money irrespective of their salaries.
Some demographic studies conducted by the Personal Money Market are discussed below to throw some more light on the popularity of online cash advance:
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50% of payday borrowers own their homes and have at least high school education.
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The average age of such loan seekers is between 20 and 40.
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Approximately 20% of the American population has already made use of payday loan facility.
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A total of 736,369 people applied for online cash advance during the period of June 10, 2010 to July 11, 2010 in the United States.
Online Cash Advance: How it Works
Whenever you are in the need of ready money, you can apply for online cash advance. For this, you have to first locate a lender firm that you can trust. Upon finding the one, the next step is to apply for online loan. Since these loans are advanced to you against your fixed pay, you do not have to produce any bank, credit card or other documents.
Whenever you visit a lender’s website, it asks you to fill out a pre-approval form. In this form, you have to provide the details that are required to test your suitability for the loan. One most important thing that the company will ask for is your monthly pay and employment certificate.
Then you will wait for the approval response from the company. If you have filled out all the details correctly and the company has also verified the same, your application will be approved within no time. In most cases, a company responds for your approval within 30 minutes of filling the form. It is so quick!
If all goes well, you will receive the requested cash amount directly in your bank account. This procedure may take 24 hours unless there is some bank holiday in between.
Online Cash Advance: Credit Limit and Charges
Online cash advance is necessarily a pay based loan facility. So, its maximum limit is up to $1500. The typical online payday loan ranges between $300-$500 and fee levied upon the loan is $15-20 per $100 loan. This fee is either deducted upfront from your loan or charged along with the repayment money amount.
The loans thus acquired are meant to be paid off with your next salary cheque. Suppose you borrow a small sum of money on the 12th of a month and pay it off on the 31st of the same month, then you have to also pay the interest for using their money for 19 days. So, it is always better to pay off the loans as early as possible, otherwise the interest will keep on accumulating.