What’s Up with Cash Back Payday Loans
Through cash back payday loans, you can actually get some of your money back, and you will not have to pay the full interest. Think of it as a discounted rate for you. There are many cash back sites and discount card companies that offer cash back deals, including for payday loans.
An honest look at payday loans.
Payday loans are basically like a payday advance. If you need money now for some kind of emergency expense, but lack the extra money, then this is where the payday loan comes in.
Payday loans are basically short-term loans usually due by the next payday, or at most, one month. Unlike bank loans, which typically requires a lot of documents and may take several days to process, payday loans, especially online payday loans, have minimal requirements and can be processed in one day or less.
You can apply for payday loans online fast. Usually, what is required is just your full name, home address, and proof of income. You submit these documents online because there is generally no need to do it in person, especially for an online payday loan.
Your loan will be released after a few days, at most. The average length of time for the approval process and the release is usually within one day. Some payday loan companies even guarantee the release of your cash advance loan in a few hours, or even in one hour.
Indeed, that is how fast and convenient payday loans can be, but there is a catch. The catch is the extremely high interest rates you have to pay, arguably one of the highest among lending companies and institutions. Interest rates of 300% to 400% are perfectly normal when it comes to payday loans.
So, if you really need to take out a cash advance through a payday loan, be prepared to pay the high fees. You may be looking at an additional $15 to $25 for every $100 that you borrow, although this rate still varies between lenders.
How to get a cash back payday loan
Cash back websites or discount websites usually have several product or service offerings. You can research different websites and find out which offers cash back payday loans. You can compare the percentage of rebate as well. For example, some cash back payday loans may have a rebate of 10% while others may have a higher cash back rate. The rule of the thumb here is to check out as many cash back websites as possible. That way, you can compare the deals or offerings for cash back payday loans.
While cash back payday loans are one good way to save money, you should be alert for scammers. Some cash back sites may offer higher rebates for payday loans for illegal companies.
Make absolutely sure that you are dealing with a legitimate company, and this applies to both the cash back site and the payday loan company you will be transacting with. Indicators of legitimacy is a physical address and contact number on the company’s website. Scammers do not usually put a physical address or a contact number for their cash back payday loans promotions, so beware of such measures.
Alternatives to cash back payday loans
While you may save money on a cash back payday loan, you may save money further by looking at alternatives to payday loans. Since the interest rates for payday loans are high, you might not save much even if you get one with cash back.
First, if you have a credit card, then use it. If you are confident you can pay the amount due within a month, then you will not have to pay the finance charge or interest. If, for some reason, you cannot use your credit card or if you are not confident you can pay a big amount by the next month, then you can apply for a cash advance from your credit card. There is an interest you have to pay every month, but it is lower than the interest rates of payday loans.
You can also check with your bank if you can apply for an overdraft. You never know unless you try.
So while you can save money through cash back payday loans, exhaust other alternatives first. Go for the lowest, but still plausible interest rates, from legitimate companies, and you get the financial assistance you deserve.