Have you ever been in a situation where you are burdened with
large unexpected expenses and did not know where to raise the money to
meet these needs? Are you overdrawn and is your credit card maxed out?
While you may have the option of borrowing from friends, not everybody
is comfortable being indebted to family or friends.
If you are in a
situation like this, perhaps the best solution for you would be to get a
cash advance loan or a payday loan. It seems that everywhere you look
these days you will see a commercial for a company who is offering a
cash advance loan and more and more people are using these loans to get
immediate cash to take care of their urgent financial obligations.
Before
you commit to a payday cash advance loan, you should know exactly what
they are, how they work and how borrowing money from one of these
lenders can affect you in the long run.
What is a Cash Advance Loan?
An
online cash advance loan is quite simply a small loan made by a third
party company that uses your current wage earnings and checking account
as evidence that you will be able to repay the loan. Most online cash
advance companies will require recent check stubs that prove you earn a
certain pre-determined minimum amount each month. They will also need
evidence that your checking account has been open and in good standing
for at least a month. An online cash advance can often be the quickest
route to getting the cash you need for an emergency.
Take a look at this example
Sam
hasn't had the best month. Two weeks ago she was surprised with a power
bill that made her wonder if she was supplying heat to the entire
neighborhood. As a single mom of two she is already overextended as it
is, and she's still trying to pay off what she spent at Christmas.
Before she could take a breath and ask "what's next?", she took the car
for an oil change only to find out that she had much bigger problems
than dirty oil. When the estimate comes back, she looks at the numbers
with tears in her eyes wondering how she can possibly afford to fix her
car when she doesn't get paid for another week and a half. She doesn't
have any friends or family to help her out and if she can't drive to
work she's going to lose her job.
Examples like this happen every
day to hundreds, possibly even thousands of people all over the country.
Hard working people are caught by surprise by bills right when they
least expect them. They don't need a hand out, just a little boost to
get them through a week or two until their next payday. Thankfully with
the online cash advance, it can now be easier than ever to get over that
little hump. If you can meet the minimum requirements to apply, you can
often be approved for a cash advance loan in a matter of just a few
minutes and the proceeds from your loan will be available to you within
twenty four hours in most cases.
Most often all that is required
is that you be at least eighteen years of age with a checking account
and a stable verifiable monthly income. There is usually no credit check
required with cash advance companies and you can get an advance loan of
anywhere between $100 and $1,000, sometimes even more. You should never
borrow more money than you really need to meet your obligations.
Advantages of taking Cash Advance Loans
Some of the advantages of taking cash advance loans include:
- They are hassle-free
- The process typically takes less than half an hour
- It is available in an emergency without having to put up any security
- The proceeds of the loan are deposited automatically into your bank account less than 24 hours after approval
- It is discreet; nobody has to know that you went through a financial crisis
Cost of taking Cash Advance Loans
Let's face
the facts here - cash advance loans are not free. These companies are in
business to make money and make money they do, generally charging a fee
starting at about 25% on average. On first glance that doesn't seem
like much -- you pay twenty five bucks to borrow a hundred. They usually
come due in two weeks at which time you can either pay off the loan or
extend it for a longer period. Be mindful that extending your loan will
increase your fees, so you need to be careful that you don't get caught
in the trap of constantly renewing a payday loan out of convenience.
With most cash advance loans carrying an annual percentage rate (APR) of
650% or more, when the fees catch up to you it will be anything but
convenient for your budget! It is important to pay your cash advance
loan off as soon as you can.
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