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credit cards typically limit cash advances to a certain percentage of available credit, all line of credit funds can be withdrawn if needed.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!

*Not everyone will be approved

The line of credit account is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems. Additional Fees may accrue if the outstanding principal balance is not paid at the end of the cycle. Credit counseling services are available to consumers who are experiencing financial problems.