Cheque advance loans can be very useful for a number of different purposes, as they can help you to meet your obligations and make payments on-time even if you’re waiting on your next paycheque.

These loans are short-term, and are meant to provide you with a small amount of money to help you where you need it until you are paid again. When you take out cheque advance loans, you will be leaving a personal cheque on deposit with the lender which can be cashed once the loan is due if you haven’t come by to pay off the loan and pick up that cheque.

Below you’ll find out more about cheque advance loans, including the requirements for receiving them and the benefits of choosing this type of loan over a more common bank loan.

Loan Requirements

If you’re planning on taking out cheque advance loans to help you cover your expenses, then you will need to make sure that you have a few documents with you to ensure that you receive your loan.

You will need to have a valid form of photo identification as well as a recent utility bill in order to prove your identity and residence, and will likely also be required to provide recent paycheque stubs and your most recent chequeing account statement so that the lender will be able to see that you have an active account and determine how much money you will be able to borrow and pay back with your next paycheque.

Different lenders may have additional requirements, but most lenders who offer cheque advance loans don’t require much more than what is listed here.

Service Charges

Because of the short repayment term of cheque advance loans, you aren’t required to pay interest on the money that you borrow. Instead, you will need to pay a service charge based upon the amount that you borrow to cover the lender’s expenses.

This fee may be a flat-rate fee that covers different amounts, or you might find a lender who offers loans that have a service charge which is a percentage of the total amount borrowed. Either way you will be able to know the total cost of the loan before you take it out, instead of simply having interest charged each month in addition to the amount that you borrow.

Benefits

There are a number of benefits to using cheque advance loans in addition to those mentioned above. These loans do not require any sort of credit check, so you will be able to get the money that you need even if you’ve had problems with your credit in the past.

You will also be able to borrow larger amounts and take longer to repay them once you have established a history with specific lenders. Of course, one of the greatest benefits to cheque advance loans is the fact that when you apply for your loan you should be able to leave with the money that you need in-hand.