Nowadays, more and more people are turning to cash advances to deal with those unexpected minor problems which seem to keep popping up so far away from payday. The availability of cash advances and the instant relief, especially if the loan was secured from an online lending company, makes cash advances the best temporary fix for these sudden emergencies. If you are considering cash advances, read on to know more about this type of loans.
What are Cash Advances?
Cash advances are short-term small loans offered to working individuals who just need a loan to deal with unexpected personal events or emergencies. They could also be used for important, usually income-related, expenses such as car repairs, computer purchase, and skills training fees.
Where Can Borrowers Apply for Cash Advances?
At first, cash advances were offered only by regular lending companies, such as banks, small lending companies, and other privately-owned lending companies. However, the internet has progressed in such a way that many financial transactions can already be done online. Nowadays, cash advances can also be obtained from any of the numerous online lending companies.
How Long is the Processing Period?
The processing period depends on where the loan was availed. If the loan was availed in regular lending companies, the processing period would be around ten days to thirty days. If the loan was availed in online lending companies, the processing period is so much shorter, just one day.
With online lending companies, the application is processed in thirty minutes to one hour. Within twenty-four hours, the online lending company sends an email to the borrower regarding the status of the application and the money could be sent the same day.
Who are Qualified ?
The people who are qualified to apply for cash advances are employees who are eighteen-years old and above, who have regular paying jobs, and who have bank accounts. High-risk individuals or people who have no credit history, low credit rating, or bad credit rating, may still apply but the lending company may ask for other documents like proof of identity, character references, and proof of residence.
How Much is the Maximum Loan Amount for Cash Advances?
Borrowers can qualify for a loan of $100 up to $1,500. However, first-time borrowers can usually only borrow a maximum of $1,000. If the borrower applied online and the application was approved, the borrower will receive the loan into his bank account within twenty-four hours.
What are the Interest Rates?
Cash advances tend to have higher interest rates than traditional bank loans. However, the rates are very reasonable since applications have high approval ratings, have very fast processing periods, and, if approved, could give immediate cash. Most lending companies ask for twenty percent interest. So, for a loan of $1,000, the loan payment amount would be around $1200.
What are the Payment Terms?
Cash advances are usually short-term loans wherein the borrowers have to make the full loan payment within two weeks or one month. The loan payment consists of the original loan amount, the interest, and other fees. However, in certain cases, borrowers can choose the long-term payment schemes wherein they will pay a part of the whole loan payment every payment period, say every month.
When paying the loan, the borrowers can choose to have the loan payment automatically taken from their bank account or can choose to just submit a predated bank check to the lending company. No matter which payment method they choose, the borrowers have to make sure that come the payment period, they will have enough funds in their bank account to make the payment.