A direct cash advance lender will expect a customer to have direct deposit of their paychecks. There is no rocket science behind this qualification other than it is good business practices for the lender. When paychecks are automatically deposited by an employer into a bank account of the customer, there is a preset schedule to arrange a payoff date with. When the contract is signed, the next step is to arrange payment. Most creditors will send you a bill for a chosen date according to the creditor’s schedule of operations. A short-term loan like cash advances and payday loans utilize customer input in order to lower the risk of non-payment. “When do you get paid next?” is an important question to the customer service department for a short-term cash advance lender. Both parties come to an agreement and the payment is scheduled.
Cash advances are low cost when paid off on time.
There is also the effectiveness of timely payments when paychecks are deposited directly. An employee could get paid on a Wednesday by check, but may not get to the bank to deposit it until Saturday morning. The direct deposited paycheck omits an individual’s personal circumstances. There is less confusion, less chance of tardy payments, and limits the excuses for nonpayment. A lender needs to practice good business sense, especially since the loan is processed online. Customers from all over will apply for loans, so there needs to be something set up to protect both parties. Customers have state regulations and best practices to support their side, and direct lenders will use direct deposits as one of theirs.
Will a direct cash advance lender accept prepaid cards?
A direct lender will not accept a paycheck that is deposited onto a prepaid card. Some employers as well as unemployment funds are processed this way. These cards have money loaded onto them, and then can be used for direct purchases. A point of sale debit is different than an ACH debit which a direct cash advance lender will process. An ACH debit is a scheduled payment authorized by the account holder. It requires the use of routing and account information. A gym membership or dance class may use this option for monthly payments. A prepaid card does not offer this transaction.
Avoid all problems by having an open and honest communication with your lender. Changing a direct deposit with your employer to avoid payment is not a solution. In fact, it will bring on more problems than you need. If your cash advance or payday loan was processed through a bank or credit union, this action could lead your bank account to be frozen until further notice. Try talking yourself out of that one.
Qualifications for cash advances protect borrowers.
Qualifications are set for the protection of both lender and borrower. Just like a borrower wants their money a direct lender does as well. A business contract was signed and consequences will be set on those who do not comply. Save yourself, future paychecks and save future finances from troubles by following the guidelines of your loan.
Spotya! Cash Advances Online is a direct lender looking out for both themselves and customers. They want to help those who qualify while protecting ones denied.
