By: Mevish Jaffer
As life has a tendency to throw you some curve balls every now and then, financial emergencies, though unexpected are still quite a common occurrence. So what do you do if you find yourself in such a predicament? Do you turn to your savings? What if you don’t have any savings?
Payday cash advance loans, also referred to as payday loans may just be your solution to unforeseen emergencies that require immediate financial attention. Whether you need it for an unexpected medical bill or as a means of financial sustenance in between paychecks, a cash advance is literally one of the quickest ways to acquire money when you really need it.
The Cash Advance Loan Process
Cash advance loans are usually on a short-term basis and require repayment after a period of two to three weeks. Having bad credit is not an issue with cash advance loans, as credit checks are not mandatory for approval purposes. In fact, there are special bad credit cash advance services that are available to help you attain a loan should you qualify as a bad credit borrower. Additionally, online lenders make the approval process quick and convenient, allowing you access to funds on the same day you’re approved. The typical payday lender generally requires the following information from you:
- Name
- Address
- Proof of employment
- Banking related information
Once all of your information is processed and you are approved, you could have the cash you need in your checking account within mere hours. The popularity of cash advance loans has a lot to do with the convenience and the rapid approval process involved.
Cash Advance APR and Interest Rates
The associated fees for a cash advance loan can be somewhat difficult to understand. The APR for a loan is usually a rate quoted for the year; however payday advance loans have much shorter terms. So in order for you to understand the total cost of your cash advance loan, you need to find out about interest rates and fees. In addition, states may have different rates, so when looking for a California payday advance, be sure to check the rates in California.
Cash advance lenders are typically always forthcoming about the interest rates and fees involved with your loan. Additional costs in the form of an application and/or processing fee may also be included. As for actual interest rate amounts, each cash advance loan lender/company charges varying rates. Also, keep in mind that if you fail to repay your loan by your next payday, you will incur late fee charges in addition to your total loan amount.
Cash Advance Loans: Not a Long-Term Option
While cash advance loans are a great source of financial support in times of need, they should no be used on a long-term basis. If you require a long-term loan, you should consider alternative options. Remember that you are required to repay your cash advance loan by your next payday, and failure to do so will obligate your lender to impose penalty charges and possibly raise your interest rates. If you have taken all of your options into consideration and still think a cash advance is right for you, make sure to shop around for a lender that will give you a good deal on your loan. Don’t forget to compare rates and terms and always watch out for those hidden fees that have a tendency to creep up on you!
