Getting a cash advance or payday loan may alleviate your money worries. Naturally, these loans must be repaid. Before getting a personal cash advance, carefully consider the advantages and disadvantages. While these loans are great for emergencies, the extra fees and finance charges may create further burdens.
How Do Payday Cash Advance Loans Work?
If you apply for a payday cash advance loan, you are required to complete a loan application. The application will inquire about the loan amount you are hoping to borrow. Moreover, you must complete information about your monthly income, employment, etc. Getting a cash advance is less hassle than applying for a bank loan. However, these lending institutions will ensure that you are able to repay the money.
Paperless cash advance lenders will not request photocopies of paychecks or banking statements. Nonetheless, the lender will confirm that all information provided is valid. Upon verification, the lender will deny or approve your loan application. For the most part, everyone that meets the cash advance requirements are approved for a loan.
Advantages of a Fast Cash Advance Payday Loan
There are various reasons to apply for a quick cash advance loan. For starters, you are able to get fast cash with little or no credit history. Additionally, individuals with a terrible credit history are also approved. These loans require no collateral or co-signer. As long as you have a valid checking account, you can get an emergency payday loan.
Dangers of No Credit Check Cash Advances
Because cash advance companies have very lenient requirements, be prepared to pay higher finance charges. Personal bank loans are difficult to obtain, however, the interest rate on these loans is much cheaper than cash advances. Typical cash advance fees range from $10 to $40 per $100 borrowed. Thus, if you received a loan for $300, you may be required to pay an additional $120. If you do not pay the extra fees, the loan amount will continue to grow until the balance is paid in full. If possible, borrow small amounts.
Another danger associated with cash advance loans is the inability to repay the funds. On average, loans balances are due within two weeks - your next payday. In some instances, those who borrow money for emergencies are unable to pay the loan balance. If you are low on cash, and do not anticipate an immediate change in your finances, do not get a cash advance.
See my recommended No Credit Check Payday Loan companies online.
Carrie Reeder is the owner of ABC Loan Guide .