“Helpful tips when searching for cash advance loans”
We all can find ourselves in a bit of a financial bind now and then, but when the money runs short it is nice to know that you have the option of getting a cash advance to help you get through the rough spots.
Not familiar with cash advance loans (also known as payday loans)? The payday lending industry has grown by leaps and bounds over the past several years and the number of cash advance lenders grows every month.
Before you look for a cash advance, you need to inform yourself about what to look for, and carefully determining exactly how much you need to borrow is a good place to start. You may be in a situation like many others who are living paycheck to paycheck and just making ends meet when you are hit with an unexpected expense.
Maybe your car broke down and you can’t get to work without it. Or perhaps you might be faced with emergency medical bills from a doctor visit that you just weren’t prepared for.
Any of these situations can put a financial burden on you all by themselves, but when they join all the rest of the regular bills, you might need help to get through this tough spot.
What are the pros and cons of cash advance loans and what do you need to know before you go out and look for a loan like this?
-The Good Side-
*Quick Approval – In most cases your cash advance loan will be approved in a few minutes.
*Fast access to your money – In most cases, you will have access to your cash advance loan within 24 hours of approval.
*No credit check – Don’t have the best credit history? No problem! Most cash advance lenders don’t even check your credit report, so you have no worries there!
-The Ugly Side-
Cash advance loans are convenient, they are even easy to get, but they don’t come cheap. The fees vary depending on the company you are doing business with. The average APR (Annual Percentage Rate) is about 400% (yes, that is four hundred percent) as opposed to about 7% for a traditional loan or 12% on the average credit card.
In addition, payday loans must be repaid in a much shorter period of time than other loans, often as short as two weeks. In most cases you are given the option of extending the life of the loan for an additional fee, but if you default on the loan, the lender is completely within their rights to report the delinquency to the credit bureaus and we all know how that is going to look on your credit report.
In addition, one of the toughest problems people are faced with when they have taken out a payday loan is that it becomes too easy to extend or “roll” the loan because extending the term with a phone call is easier than repaying the loan outright. In situations like this, the easy way out can get you caught in a vicious cycle, making your financial situation worse and burying you even deeper in debt. What was at first a simple loan to help tide you over now made the problem worse.
-What You Need To Know-
Before you select a cash advance lender, make sure that you know and understand exactly what the company is offering. The loan amount, term (length of time you have to repay it), fees and penalties should all be clearly stated and understood up front.
Do not be afraid to ask questions. This is a real financial transaction and you are signing a contract where you promise to repay a debt. That’s why it is absolutely necessary to understand everything before you sign on the dotted line.
Should you decide that a cash advance loan is what you want to do, make absolutely sure that you will be able to pay it back in the allotted timeframe.