Financial Solutions: A Check Advance Alternative
Running short of money before payday is a terrible source of stress. Many people turn to check advances to solve short-term financial problems. Check advances are small loans intended to help
borrowers get by until they get paid again. In most cases, borrowers must repay the loan in full as soon as the next payday comes - typically two to four weeks after the loan is written. Lenders
often provide borrowers with the loan in exchange for a post-dated check written for the full loan amount, plus interest fees. In some cases, instead of giving the lender a check, customers authorize
an automatic debit from their checking account.
A check advance may seem like a simple solution to a short-term problem, but the downside is that many people just aren't able to sacrifice that much money from one paycheck. They will often wind up
rolling the loan over for another pay period and incur more fees.
What Other Options Are There?
Many people don’t know about alternatives to a check advance, such as personal lines of credit from Ladder Credit. A line of credit operates similarly to a credit card in that it is a revolving line
of credit that is available for a borrower to use.
While the credit line from a card is accessed by using the credit card to pay for transactions, the funds from a line of credit are reserved in a line of credit account. Borrowers can request a draw
from their line of credit account, which may then be transferred to their personal checking account as soon as the next business day. One of the great benefits to having a line of credit is that once
funds have been deposited into the checking account, they are accessed and used the same way any checking account funds are – through debit card transactions, checks, or cash withdrawals from the bank
or an ATM. This is especially useful for customers who have expenses that must be paid in cash. While credit cards typically limit cash advances to a certain percentage of available credit, all line of
credit funds can be withdrawn if needed.
Repayment on lines of credit is also similar to repaying credit cards. With a line of credit, a periodic statement noting withdrawals, payments, fees and charges will be delivered. The statement will also
note a minimum amount due and the billing due date. Like with credit cards, borrowers can save on interest by paying back funds sooner than the due date, and by paying more than the minimum amount due.
How to Apply and Qualify for a Line of Credit
In order to qualify for a line of credit with Ladder Credit, applicants must be at least 18 years old, have a regular source of income, and have an open checking account in good standing that meets minimum
open duration requirements. Ladder Credit does not extend loans to active military, their spouses or dependents. Other restrictions may apply.
Applying for a line of credit is easy! The application process begins online by filling out our online form. Once approved, one of our friendly professional agents will be in contact soon, typically within
15 minutes during normal business hours, to finalize the process and verify information. After loan documents are signed and approved, the line of credit will be set up. Customers can request a draw from
their line of credit online at their convenience, or over the phone during normal business hours. Funds from the line of credit can be deposited into the customer’s personal checking account as soon as the
next business day.
We Are Here to Help
While check advances can be a short-term solution, it’s important to know that other options do exist. A line of credit provides cash when needed, and funds can be used at the borrower’s discretion. Contact
us today and see what Ladder Credit can do to help!
The content on this site is for informational purposes only and is not professional financial advice. Ladder Credit does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.