Life doesn’t follow your schedules – home damages, kids sickness, financial losses, medical care, vehicle repair… No matter what level your salary is, and no matter how well you manage your account, anyone would come up short! When we are in need of urgent money for unexpected emergencies, cash advance loans will assist us to get through the lean times with the amount we need.
• Overview on Cash Advance Loans
A cash advance loan, or cash advance, is a kind of short-term, collateral-based loan, typically with your checking account as collateral. Lenders often put little requirement on the qualification, and people who want to apply for a cash advance loan don’t need to have good credit scores. Most cash advance loan providers only require the applicants to complete a form of personal identification, and offer a checking account, as well as a stable and regular source of income. The loan balance varies a lot based on the state regulations, commonly between $100 and $1,000.
While offering quick solution to your financial emergency, cash advance loans may not go easy for you – you have to be prepared for the exorbitant interest rates and somewhat unreasonably high fees! According to a report from Payday Loan Consumer Information, the interest rates of cash advance loans still range from 28% to 48%, though most states in the country have put regulations on these loans.
For instance, let’s say you enroll into a cash advance loan of $100, for two weeks, with a service charge of $15 which may not seem to be unreasonable. However, if you transform this service fee into a daily charge and use it to calculate your annual percentage rate, you are more than likely to get a shock!
First, let’s calculate the daily charge by dividing $15 by the number of the loan term, 14 days, and we get a daily charge of $1.07. Then multiply $1.07 by 365 days for the APR – about 391 percent!
• Term & Process of Cash Advance Loans
The term of cash advance loans refers to the time between the day you get the money and your next payday, typically two weeks. When you get the loan, you will have to post-date a check for the full loan balances, interest charges and service fee, or authorize the lender to withdraw the amount from your checking account electronically on the due date of your payment. If you could not make full payment by that time, the lender may extend the term to your next payday in most cases.
Given the fierce competition in financial services industry, today approval process of cash advance loans and payback terms are getting better for the borrowers. Many lenders offer instant approvals and flexible payback terms to attract potential customers.
• Cash Advance Loans vs. Payday Loans
Today, lenders like to promote and market cash advance loans as payday loans, though cash advance bears a wider meaning. Payday loans, also known as paycheck advances, cover the borrower’s expenses until his next payday, while besides payday loans, cash advances also refer to the urgent cash withdrawn through an ATM or over the counter of a bank of other financial institutions with a credit card.
In most cases, cash advance loans are referred to as payday loans. However, when it comes to cash advances made on a credit card, we need to pay particular attention. As what have been mentioned above, typical cash advance loans require no credit check, but for a credit card cash advance, you need to be a cardholder first, then you have to meet the credit standards of your card issuer. If you receive the cash advance through the ATM, there is likely a fee of several dollars. Besides, the interest rates for this kind of cash advances are usually higher than in-store purchases, usually 20% to 25% annually.
• Considerations before Getting Cash Advance Loans
Cash emergencies may come up just around the corner and we need to be always prepared. In case of urgent financial hardship, cash advance loans do help us alleviate the monetary pressures, however, we should use this option wisely and must be always financially responsible.
Currently, 17 states in the US and the District of Columbia have prohibited cash advance loans, and the laws regulating these loans are varying a lot in states that allow them. So if you need cash advance loans to overcome your present financial problems, remember to check the laws and regulations in your state carefully. To protect yourself against possible future problems, be sure to acquit the loan as soon as possible, and only use the money borrowed for pressing matters, never on idle spending!
What to Expect When Taking out Cash Advance Loans?
Quick, easy and convenient, cash advance loans have become the preferred borrowing method in emergency. In cases where a small amount of financial assistance is urgently needed, you may want to take out a cash advance loan to settle this burning issue.
Whether it is online or at a local lending agency, cash advance loans in states like GA, Utah, Texas and Illinois prosper, but not with query or misunderstanding.
• In GA
There are many online lenders available for cash advance loans in GA. Applying online for a cash advance is fast and easy. The application can be done in minutes. The funds can turn up in your account within 24 hours. And your personal information is kept safe.
• In Utah
Misunderstanding about the cash advance loans in Utah has no end. Cash advance loans here are accused of charging high, unreasonable fees. So if you are considering taking out such a loan, you should get to the bottom of it and know the tricks to handle it.
• In Texas
Cash advance loans in Texas have helped many people get urgently needed cash. They are small short-term loans meant to help borrowers get through in emergency. Though fast, easy and safe, such kind of loans carries high interest. You should weigh the pros and cons.
• In Illinois
Cash advance loans in Illinois provide funds to get your business done with less time and less trouble. To apply for it, you can either go to a lending company or hop onto line.