A cash advance is an alternative financial service when banks, credit unions and creditors refuse to do business with a consumer. These loans are also known a payday loans or short-term loans. Banks now offer these type of loans, but you will have to have an account in order to be approved.
When money is needed right away, a direct lender of cash advances are a great resource. Obtaining money is quick and the payoff is short. These short-term loans run a bit differently depending on what kind of lender you choose to do business with.
Brick and mortar lenders will expect you to write a check payable to them and have it dated for two weeks after you receive the loan. The actual date will correlate with your next paycheck. That check will be held as payment for your loan. Once the check is cashed, your loan will be paid in full. If for some reason, you do not want that held check to be the method of payment for your loan, you can go back to the store and pay for the loan with cash and in return, the lender will give you the check back.
An online cash advance is set up a bit differently than brick and mortar stores.
Because there is no personal face to face connection, an online lender will want to see a bank statement. Online lenders will have similar qualifications to loan approval, but some will vary. There will be no check writing as money is transferred electronically. Online banking created an avenue for this type of service.
If your loan is approved, your cash advance will be set up to transfer directly into your bank account. There will be a designated date to collect your payment in full through electronic debiting. If this payment method is not going to work, you will need to call their office to make some other arrangements.
The two cash advance methods are similar in that if the loan is not paid in full at the original due date there will be additional costs to the loan. Most short-term lenders have high interest charges which will be applied to outstanding balances. Each time the loan goes unpaid, the lender will attach another interest payment onto the debt. Outstanding cash advances will continue to grow if not paid off. One of the best options you can have is to pay off all interest plus principle each time you get paid. The lower the balance, the less you will be paying in interest. People who take out a cash advance online or at a brick and mortar store are doing so because there is trouble in their budget. The last thing anyone should do is use one of these loans when there is no means to pay it back on time. Unpaid short-term loans will wreak havoc in personal finances.
When you go looking for an alternative lender for emergency cash moments, play it smart. Make sure you utilize all other options before applying for direct cash advances as your means to get fast cash. Just because the loan process sis simple and fast, it does not make it the best choice always. Sometimes it is about cutting back and learning how to control finances more appropriately.
