In some neighborhoods, there is a cash advance or payday lender on every block. Because these services are widely available in the local area and on the Internet, many people are tempted to take advantage of quick money loans to meet the expense of an unexpected bill. Cash advance loan companies are convenient and provide a quick solution to money problems. Yet, there is a downside. Like credit cards, if cash advance loans are used responsibly, they can be a huge lifesaver. On the flip side, if the loan is not repaid by the due date, the penalties are costly.
What is a Cash Advance Loan?
Cash advance loans are quick personal loans. The only difference is that cash advance loans are not approved by a bank. Rather, loan companies issue these loans on a short-term basis to persons experiencing cash flow problems. While most banks and other financial institutions will allow repayment of a loan over a course of several months, cash advance or payday loan companies require full repayment within two weeks. Some loan companies allow 30-day loans. For this matter, fast money loans are ideal during emergencies. Nonetheless, applicants must be a position to repay the full balance plus fees within a short time frame.
Qualifications for a Short-Term Loan
Most people are attractive to cash advance loans because of the easy approvals. Applying for a personal loan from a bank is frustrating, and usually results in a loan denial. Why? For starters, banks are cautious when it comes to lending money. Even if you have an excellent credit rating and sizeable income, it may be extremely hard to acquire a bank loan. On the other hand, cash advance loan companies approve loans minus the headache. There are no credit checks, and collateral is not necessary. Applicants who meet a few basic requirements can have funds within 24-hours. The money is deposited directly into a bank account.
Cash advance loan requirements include:
• Must be at least 18-years-old
• Same employer for 3 consecutive months
• Active checking or savings account
• No outstanding cash advance loans
• Must be a U.S. citizen
Cash Advance Loan Fees
Unfortunately, nothing in life is free. This includes cash advance loans. Prior to applying for a short-term personal loan, inquire about loan fees. Furthermore, it may be in your best interest to research different companies, and choose the lender with fewer fees. Loan fees are based on the amount borrowed. Typically, loan companies charge $10 – $30 for every $100 an applicant obtains. If choosing a 30-day loan, the fees are doubled. Avoid excessive fees by borrowing as little money as possible. Additionally, pay back the money promptly. Cash loan companies do not tolerate late payments. Once the payment is late, additional interests and late fees will incur.
How to Apply?
Applying for a quick money loan is easy. There are two options available to loan applicants. Some prefer local loan companies. Simply bring a copy of your most recent paycheck stubs, banking statement, and driver’s license. Complete a loan application, and wait for a quick response. Applications are usually approved on-the-spot.
Another option involves applying online. This process is equally simple. However, you will likely need access to a fax machine. This is necessary for providing documentations to the loan company. Once application is received and approved, funds are received. On average deposits take up to 24 hours. However, some lenders offer one-hour or same day cash advance loans.
