At some point during our lifetime we’re all bound to fall short of cash. The reasons can be numerous: For example, an insurance premium comes due, a last-minute trip to another city to attend a wedding, an ER visit, or even an emergency home repair. Luckily, there are loan options to tackle those unexpected expenses when there’s no other way of raising cash.
Cash advance loans are also known as “quick cash loans,” “payday loans,” or “paycheck advance loans.” They are short-term, unsecured cash loans with high interest rates. In most cases, loan approval is based on employment history and verification that you’re indeed able to repay the loan with the upcoming paychecks.
If you apply online, some basic information, such as your name, address, phone number, social security number, your employer’s name and number will be required. You’ll also have to provide your bank routing number and personal account number for verification purposes. Typically, your application will be approved after all of the aforementioned details are verified.
And while quick cash loans should typically only be used as a last resort due to the high rates of interest the borrower must pay, there are some benefits too. Here are six for your consideration:
They’re fast. Online applications mean you can access a quick cash loan from anywhere. When you apply using an online facility, finance partners typically have fast approval times and will directly deposit the cash into your bank account in short order.
They’re convenient. Some of the more obvious benefits of applying online include: quicker turn-around times, more convenience, and greater privacy compared to brick-and-mortar lenders.
They cover unforeseen financial hardships. Such practices can help you overcome unforeseen temporary financial hardships such as high utility bills due to sudden cold temperatures, or back-to-school shopping when times are tight.
They’re flexible. There’s virtually no restriction on how you choose to use funded money compared to other types of loans. Finance partners understand that everyone goes through tough times, but not everyone has access to money from a traditional banking system — so you don’t have to worry about them asking questions about why you need the money.
The application process is easy. You can apply from the privacy of your home and have the cash directly deposited into your bank account. So there’s no need to stack up interest fees on your credit card, or borrow from family or friends.
There are no credit checks. If you have a bad credit history or no credit history at all, it’s usually not a problem.
While it is generally very easy to get a payday loan, it is important to consider the following questions:
- Do I really need what I’m about to purchase?
- Am I using the cash advance judiciously?
- Can I repay the loan in a month?
- Is there a lower-cost alternative to deal with this financial situation?
- Do I need a financial makeover or a lifestyle change?
Remember that short term loans are beneficial only if used correctly — so if you do decide to use a cash advance, make sure you pay it off as quickly as possible. Finally, it’s important to know that different lenders offer various terms and conditions; therefore it’s highly advisable to diligently research various online lenders before getting your loan.
Photo Credit: Infrogmation