Online Payroll Advance

In tight times, an online payroll advance can help financially stretched families make ends meet. These loans are geared to be extremely short term. They are generally stop gap measures for individuals who find themselves confronting expenses that they did not expect or ill timed debts that must be met on short notice. A popular temporary remedy for individuals and families, these advances' most useful feature could be their lightening quick turn around time. When utilizing an online payroll advance, there is no need for complicated documents or long wait times. Anyone with access to the Internet can apply for these loans from the privacy of home and have money deposited into a checking account, often within two working days or less. To call these loans short term is to make an extreme understatement. With a lifespan of generally one to two weeks, these advances are meant to give the borrower a temporary financial bridge until the next pay check arrives. The system works well as long as the loan is paid off on time or even earlier than necessary. Late payment or failure to pay can prove to be a very costly proposition for the consumer.

The way that an online payroll advance works is actually very simple. When a web site that offers this type of funding is located, the potential borrower will generally fill out an online form and submit it. A loan representative will usually contact the borrower either by telephone or through an e-mail to go over the details that were shared in the online form and to verify the authenticity of that information. Copies of some documents may need to be faxed to the loan provider. If the potential borrower is approved and all of the necessary information has been made available, the funds will be deposited electronically into the borrower's checking account. To qualify for an online payroll advance, a potential borrower must meet a few minimum requirements. These requirements will generally include; a current job or proof of a regular source of income, a minimum monthly dollar amount coming in, United States citizenship, and an active checking account. Most of these lenders also require that borrowers be at least eighteen years of age and that they are not serving in the military. Credit is not generally an issue with these lenders. During difficult financial times, families can feel as if no one is fighting for them. The Bible talks about the mediator that we have with God. "For there is one God, and one mediator between God and men, the man Christ Jesus." (1Timothy 2:5)

The process for receiving an online payroll advance can vary from lender to lender, but many offer approval within a few hours of the application process. Even loan applicants with poor credit ratings can usually be approved by these short term lenders. As for collateral, and active job and an upcoming pay check are usually all that is required. Most of these web sites utilize security measures such as encryption technology to keep a borrower's private information protected. This type of borrowing is meant only as a short term fix and should never become a substitute for debt counseling or fiscally responsible spending habits. Generally speaking, the idea behind this kind of lending is to, as the name implies, provide an advance on a future or pending pay check. Once that pay check comes through, the loan should be immediately paid back. Of course, a level of interest will accompany that payment. Interest rates for these loans can generally be quite high. While the criteria for obtaining an online payroll advance are not always extremely high, there are several reasons why an individual would be turned down. Those reasons could include the lack of a regular income, no valid checking account; a potential borrower who is unable to prove their identity, or a history of delinquency in paying back payroll advances.

Obviously, one of the benefits of the online payroll advance is the extremely quick response. Borrowers in a jam can count on a very quick application turn around. Individuals who wish to continually borrow by going from lender to lender will find this practice difficult if not impossible. Some of the information that is given when a borrower applies for one of these advances is kept on file and is made available to other similar lenders, particularly information on delinquent activity. If a borrower should fail to pay back a loan of this nature back in a timely manner, additional charges and even higher interest rates will be charged, creating an increasingly deepening mountain of dept for the borrower. Another possible drawback can happen when a borrower has insufficient funds in their checking account. Many lenders will automatically withdraw the amount needed to pay back the loan once a pay check has been deposited. If other auto withdrawals have depleted the borrower's balance, not only will the payroll advance not be paid back, but the borrower's checking account could end up overdrawn.

The regulations that govern the online payroll advance can vary from state to state. Some feel that this type of high interest lending should not be allowed to continue. These opponents feel that the terms of such loans tend to take advantage of consumers. Proponents feel that offering this kind of short term financing to anyone who wishes to take advantage of it is a matter of individual rights. There are regulations in place that put a limit on any many predatory practices in lending. In addition, a few states have banned the practice of offering these loans all together.

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