Is Taking Out a Check Advance a Smart Idea?

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Are you short on money between paychecks? If you’re like millions of other Americans, you’ve probably considered taking out a check advance Mississippi. However, just because you can take out an advance on your next paycheck doesn’t mean you should. Consider the following before you sign on the dotted line.

You Could Pay Lots in Interest

The real APR for a payday loan in the state of Mississippi is more than 500%, which means you could be paying back lots in interest over time, especially if you are someone who takes out multiple payday loans at a time or in a row. You may also need to pay finance fees, meaning you could pay hundreds of dollars more in fees than what you borrowed.

You Need a Solid Income

Payday loans get their name because of the fact that you’re borrowing money against your next paycheck. For this reason, they aren’t available to people who don’t have solid incomes. If you work under the table, or if you are an independent contractor who doesn’t always know when you’ll next be paid or how much you’ll receive, it will be much more difficult to qualify for a check advance. Instead, you’ll probably need to seek out alternative lending situations.

You Should Only Use Them in Emergencies

Before you apply for a payday loan in Mississippi, it is especially important to consider why you want one in the first place. If you are dealing with an emergency situation, such as a utility shutoff notice or a car repair, then signing up for a check advance may be a good idea if you have no other options. However, if it is something that can wait, such as a new pair of shoes or a new electronic, then it is a good idea to simply wait until your next paycheck.

Above all else, if you do decide to take out a payday loan, be sure to work with a reputable lender. Doing so protects you and your assets.