Cash in advance loan is a short term loan offered by a lending firm and payday loan companies to people who are faced with financial emergencies such as car bills, tuition fees and medical expenses. It is an attractive type of loan as it does not require background and credit check. The process of getting this type of loan is simple. In fact, many lenders provide online application forms that borrowers can fill out online. The most common things asked in the form include your personal information, employment details and your savings or checking account.
Upon the loan approval, the amount will be deposited on the checking or savings account of the borrower. Normally, there is no grace period for the repayment of cash loans and the interest rate will start to accumulate immediately if the deadline of the repayment is crossed. Hence you have to keep in mind that before taking out the loan, you should be certain you are capable of repaying it to avoid repaying more interest rates. These cash advances are unsecured and their rates of interest can greatly vary, depending on your lender. Some lenders have expensive interest rates while others make it affordable for their borrowers.
Sometimes the high interest rate of the loan and the short repayment period may force the borrower to borrow with money again. Therefore it is very important for individuals to take advantage of these loans only when there is an emergency to prevent from falling into a debt cycle. When used correctly, short term lending can enable people to avoid penalties and late payment fees. In addition, this can also help people avoid negative marks on their credit score making them attractive borrowers for other types of loans.
Cash in advance loans are also available to people with bad credit. The requirements to qualify for the loan include minimum salary stipulated by the lender, age requirement of 18 years old and above and active checking or savings account. The amount of money one can borrow could vary with lending institutions but it typically they start with $100 to $1500. The fees will also depend on the amount of money borrowed and the loan duration. Some lenders can charge you with flat fee regardless of the loan term. The due date for cash advance is typically on the next paycheck date. Mostly, the loan period is no more than 18 days.
However, some lenders may allow you to repay it on the next 30 days. Lenders may also offer you with the facility of a refinance if you are unable to repay the loan on the agreed due date. Some lenders allow you to avail of the refinance option for four times. It is important to understand clearly and thoroughly the repayment terms and options that the lender can offer you before starting to deal with them. This way, you will be able to decide in advance if you are financially and fully capable to repay the cash loans right on its due date and avoid any unwanted penalties and fees.
Taking out a loan is very easy nowadays with more lenders that are offering with these loans to help people with sudden and emergency financial needs. But just like applying for any other types of loans, you have to make sure that you read all the terms and conditions of the lender and understand it very well. Short term lending can offer you with fast financial solutions but you should not just settle with the first lender you come across. Always take the time to know them better and their loan services.