What Are Online Cash Advances?
A cash advance is a short-term loan provided by a bank, credit card company, or direct lender. They are also known as payday cash advances or payday loans. Typically these loans range between $50 – $1,000. A cash advance loan must be repaid by the borrower’s next payday. Loan terms may be given up to 30 days, even if a borrower is paid every two weeks.
What Are Cash Advance Loans Are Used For?
A vehicle breakdown. An emergency medical expense. A late check from the payroll department. All of these are situations which might require an urgent need for extra cash. Traditional personal loans take too long to approve and require a lot of paperwork. In these cases, online cash advance loans offer an ideal solution – a small loan with fast approval!
The examples above show responsible borrowing. Payday loans should only be used to cover one-time emergency expenses. Here are some examples of the types of expenses where a cash advance loan is suitable.
- Car repairs;
- Emergency home repairs;
- Moving expenses;
- Emergency medical bills;
- Bills which are about to reach the collection agencies or will be charged exorbitant late fees.
When Should You Not Use A Cash Loan?
Never use cash advance loans to pay for a luxury lifestyle or for ongoing expenses. Sadly, many borrowers do try to use them this way. They do not earn enough to cover their rent, so they take out a loan. Rolling it over repeatedly, tacking up fees along the way gets them deeper into the spiral of debt. Misuse of payday advance loans can make your already bad financial situation a whole lot worse. However, if borrowers use these loans responsibly, they can be a helpful, short term financial solution!
An Example Of How A Cash Advance Works
Imagine a person needs an urgent car repair that costs $300. Due to a couple of unexpected expenses, perhaps an urgent visit to the doctor or the repair of a plumbing leak, that individual simply does not have the funds. If he does not get the vehicle fixed, he will not be able to get to work the next day. This person has poor credit and does not possess a credit card.
He goes online and gets approval in minutes for a cash advance of $300, paying $45 in fees. He covers the car repair with the loan a couple of hours later. In a few days, he receives his paycheck from work. He pays the loan back immediately, and now has a working car and no debt.
If a borrower needs to pay any bills right away to avoid further problems, that would also be appropriate. For example, a person is short of money and also has a part-time online business. The internet bill is due and access will be cut off if not paid on time. Not being able to access his online business may cost money! In this case, applying for a fast, online cash adavance would make sense. The fees may amount to less of a cost than the lost business.
What Are Cash Advance Fees?
It is important to know that short-term loans have high fees and interest. For every $100 borrowed, there is usually a fee of around $15. State authorities set caps on fee amounts as well as maximum loan sizes. Thus, the average APR is about 400%. If the borrower is unable to repay the loan on time, lender rolls over or renews the loan for extra fees and charges.
Offline vs. Online Cash Advance Loans
Cash loans are available both online and offline. The process is pretty much the same in both cases. Applying online saves customers a drive and allows them to shop around for the lowest rates. This is also useful in an emergency.
What are the Cash Advances Pros and Cons??
| PROS | CONS |
|---|---|
| Apply quickly and easily online! | They carry high fees. |
| Approval within minutes! | Interest accumulates, with each loan renewal. |
| Lenders transfer the funds immediately! | Many consumers use cash loans irresponsibly. |
| Bad credit or no credit doesn’t disqualify! | Difficult to understand loan contract terms. |
| Borrow only as much as necessary! | The loan does not help to build or repair credit history. |
Frequently Asked Questions About Cash Advances
Q:Are online cash advances scams?
A: Online cash loans are not scams, but borrowers need to make sure they apply with a proper company to avoid predatory lenders!
Q:How much can I borrow with a cash advance?
A:Each state sets a different limit. In most states, the maximum amount is $500 or $1,000.
Q:When will I get my money?
A:You should receive your cash advance within one business day. You may even get the money the same day, within a few hours.
Get the Cash You Need Right Away!
Need fast cash? Apply for cash through us, and enjoy the following:
- Cash advances ranging from $100-$1,000;
- No credit check required;
- Approval within minutes;
- Direct deposit of funds;
- Same day funding is available;
- No faxing, no paperwork;
- Competitive low fees;
- We vet our direct lenders to ensure trust;
Ready to apply? Fill out our quick loan application. Write down the amount you need along with your email and click “Apply Now!” If you are approved, you will receive your funds within one business day!