Online Cash Advances: Convenient or Predatory?

Online Cash Advances: Convenient or Predatory?

Have you seen the number of cash advance companies that are popping up on the internet? The big question is, are these companies making a cash advance loan convenient or predatory? The answer lies within each companies practices and it is up to the customer to determine if the company is trustworthy or not. Your cash advance loan is to help you through an emergency situation — it should not put you in a worse financial circumstance. The basic definition of a predatory lender is, “one who intentionally suckers someone into a loan they can’t afford.”

Warning signs may appear that may indicate the lender is predatory like… “easy extensions…” or “don’t worry if you can’t make your loan due date.” Getting a cash advance from a lender that advertises these words could get you in debt way over your head and end up costing your hundreds of more dollars in loan fees. Many of these cash advance companies will try to approve you for a loan much larger than you could ever afford to payback. That’s the catch. If you can’t afford to pay it back, the loan will be extended, another fee will be added and you still owe the original amount next payday. Another tactic of a predatory lender would be not to advise you to pay back the original loan on your specified date, but adversely, tell you to apply for another to get you through that week. This will become a continuous cycle of loans that are never paid putting you in a bad predicament.

On the other hand, if an online company is legit and willing to help the customer achieve getting a loan they can afford, it is the most convenient way possible to get a cash advance. Finding a trustworthy online lender makes it easy to apply 24 hours a day 7 days a week. The right lender will provide the entire cash advance process electronically so even the paperwork you submit can be faxed or emailed. Once approved, your cash advance will be deposited in your checking or savings account. Then later deducted on the day your loan comes due. Sounds pretty convenient to me. You get the cash you require quickly without leaving your home and you aren’t being put in an embarrassing position at the local cash advance store.

Research is the key to finding a good cash advance lender whether it be online or in a store front location. Check other customer testimonials. Type the company name in your search engine to see what people are saying about them. And you always have the option to call their customer service specialists to hear how they deal with their customers. Try to look for a lender based in the United States so that you can actually speak to a human being if you have questions. Many online cash advance lenders are completely anonymous offshore entities un-regulated by any government and only looking to rake you over the coals. But a few of them are there to help people obtain the financial relief they desire.