Know When You Can Be Proud to Use Alternative Financing

Payday loans get a bad rap. Most of the press cites annualized interest charges that would accrue if you used this method of alternative financing, and those numbers can look pretty outrageous (3000% with some cash advances lenders).

But no one in their right mind would hold payday cash advance loans that long. They are designed for short-term needs, to be paid off appropriately in the short-term. Ideally, it’s money you use for an emergency when you don’t want to or are unable to access other assets due to illiquidity.

You don’t have to tell anyone you are getting a payday loan. The online method is easy and quick – it has an application that requires no faxing, you just take 10 or 15 minutes to complete it from your personal computer – and the money lands in your bank checking account by the next business morning. Discover on a Tuesday that you will need up to $1500 in cash (varies by state), and you will have it ready to roll by Wednesday morning.

There is no credit score requirement on these loans nor do they require collateral. You just need to show you have been at your current job for more than one month, that you are 18 years of age or older, and that you have a bank account.

You might use it to finance something for a small business. Or, you perhaps need the money for an unbudgeted emergency (medical or dental, veterinarian, pay overages on a cell phone bill, job retraining fees, auto down payment, or just regular bills).

To summarize, consider the advantages of cash advances that come through payday loans:

• Private, conducted from your computer
• Fast, the money is yours by the next business morning
• Convenient, no need to go anywhere or produce any documentation
• Accessible, regardless of how good your credit score is or ownership of collateral, you can get cash advances as long as you are employed
• Easy to manage, as the payback is automatically pulled from your checking account on your next payday

Everyone has their tricks for working through tight spots in their personal finances. This is one of them.