Using a Cash Advance Until Your Next Pay Day

Living paycheck to paycheck can be trying. With a low paying job or bad credit, a personal loan may be impossible, or it may take too long to get the money that you need. We have all seen the commercials for cash advances, but if you have ever struggled with whether or not a pay day loan would be right for you, my experiences may be a help to you.

It really is as simple as they claim. All you need is your most recent pay check, a photo ID, and a checking account. Some of the more sophisticated stores will ask for a bank statement and second ID, like a social security card. First you fill out a small application that includes your general contact information. They will all ask for phone numbers so be prepared! Most stores want one of two numbers to contact you, and usually at least three references. Don't worry-- they don't actually talk to anyone. In case you would default on your loan, they want a phone number of a relative who would know how to get a hold of you so they can retrieve their money.

The amount of money you can borrow depends on your check amount and pay schedule. The fees are generally fifteen dollars per one hundred borrowed, so if you borrowed one hundred dollars you would owe one hundred and fifteen on your due date. Most loans are due on your next pay day regardless of how many days away that is, unless you visit a store that has a specific "21 day loan" promotion available. Some loan stores also offer interest free loans to new customers, so it is important to shop around.

There are a multitude of cash advance stores, all with very similar names that work in very similar ways. You can also get multiple loans from different stores at one time. During my experiment, one store checked to see if I had a loan through another cash advance store and would not help me. However, three other stores would. I was able to borrow $500 (due in 21 days), $250, and $500 both due on my next paycheck. I simply wrote them a check for the amount owed, dated for my pay day and walked away with cash in my hand. Once I got paid, I took cash from my bank and returned to the cash advance store, using the cash to "buy back" my checks. I am now able to re-borrow money from those same stores.

Borrowing money from a cash advance store can be scary, but if you know you will have the money to pay it back, it may be a sensible solution to hold you over until the coming pay day. It is definitely a relief to know that you always have a way to get the little bit in case you ever need it.