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A payday cash advance is a short-term loan that is designed to help working Americans cover expenses until their next payday. These types of loans should only be used when you have an immediate need for cash and cannot wait until your next payday.

1. Payday cash advance loans carry higher than average interest rates. This is mostly because lenders are willing to supply immediate cash and do minimal background checks so there is more risk on their part. Also, even though this is a short-term loan, the interest rates are annualized so they might seem extreme. In reality the fees are usually pretty reasonable ranging from $20-$60.

2. When you get a payday cash advance loan, you use your next check as collateral. The funds will be taken out of your paycheck on your next payday or whatever date was agreed upon. If you are unable to pay on that date most lenders will roll over the balance until the next payday.

3. You should only use a payday cash advance when you desperately need cash before your next payday. A good rule of thumb to use is that if the cost of not getting the loan exceeds the finance charge of the loan then it makes financial sense to get the advance. So things like late fees, bounced checks, over the limit fees on other debts all need to be considered. Many times the fees on these other debts well exceed the finance charge of the payday cash advance loan.

4. If you are in the military you will not be approved for this type of loan. The military has their own cash advance programs and is very strict on outside lenders.

5. Not all payday cash advance lenders will offer you the same rate. There are many lenders across every state and not all of them are equal. Unfortunately some lenders will try and take advantage of desperate consumers and charge above market rates. This is why it's important to compare lenders online before accepting a loan.

These are 5 of the most important things to understand when considering getting a payday loan. Remember this is a short-term loan and should be tried to paid back as soon as possible. While lenders will be flexible with you in terms of the payback date, it is still important to pay it off as soon as possible to avoid additional fees.

Instead of waiting in line at your nearest cash advance location it is much easier to apply for a loan online. Using a matchmaker service such as CashAdvanceSelector.com is the most convenient way to obtain fast cash before your next payday. They are one of the biggest and most respected payday loan matchmakers in the industry. It is a completely free service and typically customers are able to get a better rate than going directly to a lender because multiple lenders are competing for the loan rights.