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Cash Advance Loans
Cash advances, sometimes known as payday loans, can be helpful for consumers who need cash quickly. Cash advance loan offers give you the flexibility of paying unexpected bills without having to borrow from other sources.
Understanding Cash Advance Loan Offers
Cash advances are loans that are advanced based on the consumer’s paycheck. The loan must be paid back at the time the consumer receives his or her next paycheck. The total amount is typically $1,000 or less for a cash advance loan. Cash advances are often used for short-term emergencies that are unlikely to happen on a recurring basis.
Since there is no collateral for these types of loans, the interest rates are much higher than a more traditional secured loan. However, the actual numbers may be somewhat misleading. The annual interest rate can appear quite high, but these loans are intended for a shorter term, about two to four weeks.
The total amount you receive depends on the lender and your application. In many cases, you will get an answer to your online application within a few minutes. Money can arrive in your account as soon as the next business day.
Why People Get a Cash Advance
If you need some money quickly but can’t put it on a credit card, a cash advance may be a good option to consider. People typically use cash advances to pay for:
- Car repairs
- Medical bills
- Problems while traveling and other sources of shortfall
Sometimes an unexpected bill forces you to choose between attending to your immediate needs and making your regular payments on things like rent, utilities, student loans or credit card bills. If you only need another week or two to get current, a cash advance could offer you the convenience of avoiding other late bills.
How to Apply for the Best Cash Advance Loan
Cash advances tend to have fewer restrictions than other loan types. This means you may be able to get one regardless of your credit score. Most lenders require you to be able to prove the following:
- Contact information — including address, phone number and email
- Current employment
- Regular income
- Active checking account with the ability to debit electronically
You may or may not need a credit check. Some lenders set a minimum credit score, but many do not.
Everyone ends up with an unplanned expense from time to time, but it doesn’t have to completely disrupt your financial life. Check out these cash advance loan offers and determine which one is right for you with help from CreditSoup.