Like payday loans, cash advance are small and short term loans that you can exploit in order to help you manage your cash position until you receive your next payroll. Borrowers can apply online and loan approval is quick. In many instances, one just needs to fill up an online application form and once approved, the money goes straight to your bank account just hours or even minutes after you applied.
The best thing about these instant loans like cash advance include the fact that loan companies do not require borrowers to present collaterals or proof of assets to back up their loans. In addition, those with negative credit score are also accommodated. However, before you apply for one, here are some questions that you might be hesitant to ask and just focus on the money you will receive.
How much money to apply?
Cash advance loan companies can lend to borrowers for as high as $1000 or depending on the amount of salary that you receive. Do not expect that you can have a loan in the amount more than 3x your payroll. Remember it is only a small and short term loan.
How fast are the loans approved?
As mentioned beforehand, it is very quick as loan companies do not require borrowers to submit tons of documents when applying for a loan. The process will require you to input only your name, address, payroll or employment details, and the amount that you need.
How much is the interest?
It depends on the loan company, but one thing is sure, instant loan companies are more expensive than regular banks and other financial institutions.
How loans are repaid?
Depending on the loan company, the normal practice is that the cash advance provider will ask your bank (where your payroll is credited) to debit the loan repayment together with the interest from your account. Some loan companies may also require postdated checks as loan repayment.
What happens if you cannot repay the loan?
For some reasons, there are borrowers who cannot repay the loan as agreed; thus, they earn additional interest and penalties. When this happens, the best way is to contact the loan company, explain your situation, and arrange for longer repayment period, or negotiate for best and convenient terms to repay the loan.
Take time to ask these questions when you apply for a cash advance loan to avoid unnecessary surprises at the end.
This post is published for MO Payday Loans. They offer payday loans, check cashing, cash advance, and other related services.
All information provided is a responsibility of the said company and does not reflect this blog’s opinion.