When looking for financial relief, you deserve to know all the facts. Here are commonly asked questions concerning cash advances.
1) What kind of credit or collateral do I need to qualify for a cash advance?
Neither is required to apply for an advance, also known as a payday loan, paycheck advance or cash loan. All you need is an active bank account and proof of income. Your credit score is completely irrelevant so if you have a poor credit score or no credit at all, do not be deterred from applying for cash advances.
2) How do I get my money?
The loan process is simple and straightforward making it easier for you to get the cash you need. Once you've applied for the advance and completed the necessary paper work, your loan should be approved soon thereafter. Within hours of approval, the loan amount will be wired directly into your active bank account for you to access.
3) Why is the interest rate higher than other loans?
This is a common worry that makes many people hesitant about cash advances. They have heard that the interest rate is much higher than other loans and that leads them to believe they will have to pay an exorbitant amount in interest. Truthfully, the interest rate is higher but that is due to the nature of the loan. It is a small, short-term advance that is repaid two weeks or so after. Your interest rate is only for the duration of the loan making it much more manageable to pay.
4) What are these short-term loans used for?
Most commonly, cash advances are used for financial rough patches and in times of emergency. You are responsible for the loan and it's really up to you how you spend the money but most borrowers are in a bind and the following pay day seems too far out of reach. Be it for bills, the car, a medical emergency or a weekend getaway - it's your loan to spend and repay. Though this type of beneficial financial option should not be taken lightly as they are consequences (as with all loans) for not repaying the loan and interest on the specified due date.
5) How do I repay it and what happens if I can't?
The repayment process is just as simple as obtaining the money. Once you are approved and you and the lender have crossed the t's and dotted the i's, the same route the lender used to wire the money into your account will be used to repay it. This is why it's imperative that you have the loan and interest amount in your account on the due date or else the payment will be considered late and you will be charged late fees. However, if you know that you can't pay it back, notify the lender and request an extension. This way you avoid the late penalties.
This kind of loan, as hassle-free and straightforward it is, should only be utilized in situations of financial strain. If used and handled responsibly, cash advances can be a lifesaver and a future option for handling any future financial hardship.