You may have seen an advertisement for an instant cash advance loan online, or driven past a billboard promoting the benefits of these services. But have you ever really stopped to think about what this means?
Each state will vary in its exact rules and regulations regarding these types of loans. But with their relatively easy cash advance loan provider requirements, they can be a good option for those with poor credit that find themselves in a pinch.
Like any other loan, it does require careful consideration of the terms and conditions. Without careful planning, these quick cash sources can sometimes lead to a debt spiral that will only make the situation worse.
For more information on this funding source and how they actually work, read on below!
A cash advance loan is a type of funding that provides short-term, low-balance loans with typically high interest rates. They are usually structured on a post-dated check or an account withdrawal authorization that allows the borrower to recoup the funds upon the recipient’s payday.
These loans are typically easy to qualify for, granted the applicant has a steady job and can provide proof of income. They must also be 18 years old or older, with a checking account and valid identification. However, they usually do not require a credit check making them particularly appealing to customers with poor credit.
An instant cash advance loan is designed to “hold over” the recipient until the next payday, and can often be approved within just minutes. Though, it is important to note they often carry an astronomical interest rate that can lead to a spiral of debt if misused.
Obtaining an instant cash advance is generally pretty easy, often allowing for approval in 15 minutes or less. This can be done online in no time, thanks to sites like payactiv.com.
Most often, the borrower will write a check for the loan amount in addition to the lending fee. It is dated for the “payday” or “due date.” These loan terms are usually just a few weeks or less, at which point the lender will cash the check or withdraw the funds electronically from the borrower’s account.
If the borrower is unable to pay back the funds when the loan becomes due, they can usually request an extension. This will depend on the lender, but extensions are often granted at least once.
Of course, extensions tend to carry additional fees to keep in mind.
Like any other type of loan, an instant cash advance loan may not be the right funding source for everyone. But for borrowers that find themselves in a pinch and need fast cash—especially those with poor credit—this might be a viable option.
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