More often than not, that paycheck doesn’t stretch as far as it needs to. And even the best budgeting skills might not help when unexpected expenses crop up before your next payday. Either way, if you’re strapped for cash and there’s a few days to wait until you get paid next, that’s where a payday advance comes in handy. But often there’s a bit of confusion around what a payday advance is and how best to approach it. At Moola, we call a spade a spade, so we’ve put a heap of effort in to make a payday advance easy to understand. So we’ve listed a few helpful bits of info around a payday advance right here.
Essentially, a payday advance is a cash loan that’s designed to be taken out for a short time. Unlike traditional loans, they are arranged over days, not years. The whole idea is that a payday advance is a handy stop gap until your next payday.
As part of being a responsible lender, companies like Moola won’t let you borrow more than you can afford to repay. This also means that you can’t borrow the entire amount of your next payday. However, you can work out a way of borrowing an agreed amount where repayments are spread out over a number of paydays. The best way to find out is to head to our homepage, design your loan, including the amount you wish to borrow, the duration of the loan, how often and when your next payday is. Once we receive your application, we can then process it and let you know how much you can borrow and for how long as a payday advance.
There’s always a lot of opinions around this question. And also some confusion. As you read earlier, payday advance loans are unlike traditional loans, whereby they are arranged over a short term period rather than over years. This means that the interest rate is calculated quite differently. To put it simply, reducing the period of a loan means that the interest rate is higher. To make things easier to understand, at Moola we will always show you a total amount repayable, provided you keep your side of the bargain and make the repayments as agreed.
As with all credit providers, you need to meet some basic criteria. And as indicated by its name, a payday advance is designed for people who are employed with upcoming pay from their employment to repay their loan. Typically, applying involves you supplying your recent payslips to establish that you are currently employed and to indicate how much you earn to determine how much you can borrow, along with how often you get paid to work out the frequency you can repay your payday advance.
Because Moola is a 100% online lender, we’ve made payday advances easy to sort out. Once you’ve applied (which take less than 5 minutes) we speedily assess your application. Once that’s approved, we can pay your payday advance straight into your nominated account in less than 60 minutes - guaranteed! So next time you’re strapped for cash inbetween pays, head to Moola for an easy payday advance!