A cash advance and a short term cash loan refer to the same kind of credit, where you have to repay the advance by your next payday. Short term lenders usually allow you to use approved funds for different reasons such as getting through temporary setbacks, paying bills and taking holiday trips.
Payday loans range from $100 and can be up to $6,000. Usually the lending fee is around 15 to 30% of the loan amount. Therefore, every payday loan that you collect, you wind up paying as much as $15 on every $100. however, the Annual Percentage Rate (APR) could be as high as 600%. Not even the lousiest of credit card interest rates can be that bad.
Your credit score is also at risk if you are unable to pay off your payday loan because once the postdated check is deposited, it will bounce, and once that happens a few times, your credit score can get damaged.
Pawn shops have always been a convenient way to borrow money against collateral you already have in your possession. This poses a less risky loan agreement. The interest rates can be as low as 2%, allowing the borrower to leave their credit score out of the equation. Gems N' Loans in Escondido has been known to work with their clientele and also offer longer loan contracts.
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