Cash Advance Services - Learn the Downfalls

By: Cavin Jacobs

Most people know fast payday cash advances have been easy to obtain ever since the beginning of the Internet, this cash loan source definitely has seen booming popularity through the last decade. The most desirable features of cash loan advances spring from the fact that these simple loans are quite effortless to obtain and they are in your account almost instantly. Online cash advances are also named payday advances. These cash advance loans can at best be declared as very expensive short-term loans.. A large number of unique businesses started providing online cash advance loans mainly due to their exploding popularity and large profit margins. With several Internet cash loan companies found online, the Internet can also provide the complete suite of loan resources and providers of payday cash advances. Therefore, through the Internet, a customer can complete all the process online.

Cash advance loans do not even need a credit check. There are however a few general guidelines that most customers can meet easily. The basic things needed to be approved are a verifiable and employment, which includes a minimum monthly income of $800 or more. Depending on your area this minimum earning requirement may vary from from one lender to the next. The other requirement is that the cash advance recipient must also have a valid checking or savings account to accept deposits, where the loan company will direct deposit the amount.

For a payday cash advance of $100, a payday lender may charge interest upwards of $10 - $30, just for the pay back period of 2 weeks. These very costly cash advances are driven by unforeseen pinching situations. When customers have a urgent need for money, a cash advance could be the only applicable choice with fast processing time, which can transfer quick cash to the applicant's bank account within a few hours. In addition, a customer with a undesirable credit standing is not able to get a personal loan approval. For them, the simpliest way out is through a cash loan advance because the will not evaluate their credit report. Unlike other loans, a cash advance allows a customer to spend the money for any purpose that he or she wants. Many times an applicant will use their payday cash advance to pay passed due financial obligations to avoid getting turned in to the credit bureau. Certain delinquent payments as in the case of credit cards may initiate a larger interest rate for future payments. Conditions as these could also initiate a future need for a cash advance loan. On an annual average, the accruing interest on a cash loan advance will work out to around 490% APR or even higher. So, even though they are easy to acquire a cash advance definitely should be considered only after trying to qualify for other possible alternatives.

Since cash advances don't demand a credit check, the loans companies have a high-risk in receiving the loan back. To cushion this high-risk, the loan company invariably charges a much higher interest rate. Generally, the loan term of cash loan advances are especially short typically ranging between two to four weeks. In most cases the maximum loan that may be borrowed with a payday loan advance is less than $1,500. While calculating that the payday advance lender charge a flat fee for cash loan advances, the longer the term of a loan, the lower the annual percentage rate would be. Therefore, from many unique sides, you can do a bit of investigating before going for cash advance loans to acquire the best rate. Sound judgment will certainly enable you reap the maximum benefits of a cash advance.

Money Management
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Money Management
 



Share this article :
Click to see more related articles