Actually, people choose payday advances to cover small, unexpected expenses while avoiding costly bounced-check fees and late payment penalties. Payday loan is a viable option, if you’re overdrawn on your credit cards, and your requirement is of a small amount. These amounts are usually limited to within 500 to 600 dollars. So, what do these payday loan companies use as a bait to lure you? First, these companies are not fussy about a few defaults, since they levy a decent service charge on a payday loan. Their loan criteria are also very relaxed. Certain companies even extend these loans without asking for any documentation. Since the amount involved is small, payday loan companies do not even check up on your credit rating, before clearing your cash advance. And the best part is, you don’t have to chase them, they electronically transfer the required amount directly into your checking or savings account.
These companies also attract you by throwing in some perks, like exempting you from service charge for the first week. But, don’t be naïve enough to believe this to be their friendly overture. Where money is the issue everything is calculated. These companies know very well that if you were capable of returning the entire amount within a week, you wouldn’t have applied for a loan in the first place! This is the reason why payday loan companies are aggressively marketing themselves and surviving… nay, prospering.