Know the Different Options With Cash Advance Loans
Lenders who offer cash advance loans generally offer three main types. First is a payday loan, which is a loan you take out and promise to when you are next paid by your employer, usually two weeks. Finally, there are installment loans where you pay off the cash loan in payments over a specific period of time.
Plusses and Minuses of Cash Advance/Payday Loans
Most people associate cash loans with payday loans. These loans are processed without regards to your credit rating. They’re easier to get, and with many companies, you have the money in hand within 24 hours.
While payday loans are fast and easy, the interest rates can be quite high. It’s essential that you pay them back on time. If you cannot make the payment as promised, interest rates and fees will increase the debt drastically. It’s best you find alternative methods to borrowing money, such as asking your family or friends for loans, but if all else fails, a payday loan is helpful for getting the cash you need in a hurry. Just make it a priority to pay back the amount borrowed plus the finance charges on or before the due date.
Cash advance loans like payday loans often limit the amount you can borrow. Plan to provide your SSN, ID, and proof of income. You may also be asked to write a postdated check for the amount you owe, plus finance charges. You get that check back when you repay the loan. If you fail to pay on time, the company may try to deposit the check. If that happens and the money is not there, you are required to pay back any bounced check and overdraft fees.
Plusses and Minuses to Cash Advance/Installment Loans
Installment loans require monthly payments rather than a lump-sum payment at the end of two weeks or whatever the repayment terms require. As a result, they may be more desirable than a payday loan. You will be asked to provide proof of income, such as a bank statement or paycheck stuff, and proof of ID with a photo license or other valid photo identification card.
With an installment loan, the amount you’re allowed to borrow is often higher. The process is the same. Fill out the online cash advance loan application, get instant approval, and then wait 24 hours for the cash to reach your bank account. One of the perks to installment loans is that the interest rate is often lower.
Make sure you can make the monthly payments on time. If not, you face high fees and penalties. You may be making these payments for up to a year, so if you expect your financial situation to worsen months from now due to retirement or a layoff, a payday loan may be the better option.