How to Get an Emergency Payday Insurance

What are payday insurances?

Payday insurances, sometimes referred to as payday advances, are unsecured short-term insurances, usually in small amounts. The only collateral generally required to apply for these specific insurances is some form of employment records, such as a pay stub, although specific payday insurances have become an acronym for any type of small, short-term insurance even if not technically backed by direct dependence on the borrower’s next paycheck. Payday advances, like any insurance vehicle, are highly regulated. These regulations vary greatly from state to state in the United States, and state to state internationally.

Payday insurances are a booming business

Payday lenders have seen booming success all over the world, thanks in part to providing a service that was not available before. They noted that emergency cash insurances offer an attractive alternative for people who are unable or willing to use less expensive traditional methods of borrowing money. Some UK emergency cash advance companies have described their approach as a useful financial service for young borrowers savvy in the use of the web, accustomed to the ease and convenience of instant online communication. These applicants often feel excluded from the traditional banking system. The modern consumer of today, who has grown up entirely through social media, can apply for these micro insurances using their smartphone, with the money transferred to the bank accounts of the successful applicant in a matter of minutes.

Compare payday insurances with other types of insurances

Many types of short-term insurances can seem expensive when the fees associated with the insurance are calculated as the APR. For this reason, payday lenders prefer to compare their insurance products to bank overdraft fees and other fees that traditional lenders use to get money back. Many payday lenders do not even describe their business as banks, simply as another form of Internet technology, used to connect willing borrowers with willing lenders.

Payday insurances available 24/7

Since traditional outlets for insurances are hard to find and require larger and larger amounts of paperwork even for small insurances, Payday Advance has stepped in to fill the void. They are available day and night, seven days a week, and in many cases the process is fully automated so that insurances are granted without the borrower having to talk to someone else. After applicants establish a track record of successful repayment of cash advance insurances, some lenders only require applicants to submit required insurance amount, required insurance term, and funds are provided immediately.

Why would I pay the extra interest?

Sometimes it’s an unexpected emergency, or there may be an opportunity that you just can’t miss. Are they playoff tickets? Did a friend get ringside seats at ‘Battle of the Century’? Or maybe you have committed an unforgivable sin and forgot the birthday of your significant other…

Whatever the reason, you are short of cash. If you do not have credit cards, your friends and family may not be in a position to help. What are you doing?

It is increasingly common for those in immediate financial need to approach a short-term lending company for a “payday insurance.” Often these insurances are unsecured, which means that the borrower has no collateral to offer. This makes the insurances a high-risk cash advance to the lending company. If the borrower bails, there is nothing of value to collect. They offset the increased risk by charging very high interest rates.

The applicant must usually provide proof of employment, and government-issued identification. The idea is that when the applicant’s next paycheck is issued, the money will be used to pay off the insurance. In some cases, insurances may be given to the borrower to purchase a car or other expensive item. In these cases, there is somewhat less risk for the lender. The item can be repossessed if the applicant fails to repay the insurance as promised.

What is the bottom line?

Companies around the world offer payday insurance services including Canada, the United States, Australia and Great Britain. The rules and regulations regarding the amount of interest that may be charged, and limitations on insurance amounts vary according to the country, state, province or province in which the payday insurance company is located.

The industry is growing. Perhaps the fastest in the UK, where there are fewer regulations on how payday insurance companies operate. British companies expanded into Canada and Australia. In a few US states, high-interest insurances (such as those offered by payday insurance advance companies) are illegal.

Instant check cashing is another service often offered by prepaid companies. The customer may not have a bank account or want instant access to cash. A flat fee or a percentage of the check amount will be charged as a fee. Short-term insurance companies often open their doors early and close late to take advantage of those who need immediate access to cash.

Many companies are now submitting online applications for payday insurances. They usually give a quick decision on a customer’s order, sometimes within an hour. The cash can then be deposited into a bank account or collected by the borrower at the company’s office.