Personal Cash Advances
This is one form of short-term loan which aims to offer loanable cash to people who are in dire need of it. It can be in the form of a payday loan which makes it payable within a short period of 14 days or up to the next payday. Some cash advance providers may offer longer repayment cycle especially for the non- first timers. The amount of cash you can borrow may vary depending on consumer practices of the state.
Advantages of Using Cash Advance Services
• Money can be obtained within 24-48 hours.
• No need to worry about stringent credit and background checking. As long as you can prove that you are employed or you have a steady income, then you can apply for it.
• Inquiries can be made via the web, on the phone or through e-mail. Most businesses offering this service accept initial inquiries online.
• No need to show or provide any collateral. You just have to ensure that you can pay the loaned amount on time.
• Even those without a bank account can avail. They can have their money through prepaid cards instead.
• For people who remain to be in good payment standing, applying loans for the second or third time would essentially be a breeze.
• Most companies also offer referral bonuses to people who can convince others to apply for a loan. Referral bonuses can be up to $500.
• These services are also linked to other money services. Being a good payor can automatically help you avail of other forms of loans.
So, if you have finally made up your mind and plan to apply for cash advance soon, you need to fulfill the following basic requirements to qualify:
• Are you at least 21 years old? Some companies also offer short-term loans to those who are 18 years old. This will highly depend on your proof of income.
• Do you have a job? Submit your proof of income and make sure that the documents are authentic.
• Having a bank account can be an advantage, too. However, there are now establishments that use this as a secondary requirement.
How to Avail of Cash Advance
There are typically two ways to avail this service:
1. By directly going to money service establishments. These businesses are designed to offer quick cash loan through various means – cash advances, check encashing, payday loans, collateral-based loans, etc. There also those that encash digital money such as PayPal or Bitcoins. As they provide hassle-free loan application with minimal requirements, you may expect to pay staggering APRs or interest on your loan. Most of these services will also require borrowers to have an active or existing bank account.
2. Another option is with the use of charge card or credit card. Credit cards authorize owners or card users to withdraw cash directly from ATMs. Note that there is always a limit when it comes to withdrawing cash from credit cards. Most of cash advance providers impose an interest of 3-5% and will require users to pay the amount within 30 days. The advantage of using this method is that it is possible to withdraw cash in any state. On the other hand, cash advance services are only available in certain states.
Important Factors to Consider before Applying for Any Type of Loan
Cash advances, just like all other types of loans, are not ‘free money.’ They are accessible, but they need to be repaid, too. Before applying, you must understand the financial responsibilities you have. You need to understand that cash advances require massive interest and fee which must be paid within a very short period of two weeks. Note that both federal and state laws are applied in terms of requirements and of sanctions.
Each state has its own law concerning unpaid debts, bounced checks, or returned checks. Most establishments will initially contact you in case of insufficient funds in your account. If you still fail to pay for your loan, a collection agency may take over. This will also immensely hurt your chances of renewing your loan. Moreover, it can tarnish your credit score which will have an impact on your capacity to loan directly from a bank, purchase a home, etc.