When people are strapped for cash, the best option will be to get a loan from the bank. Since this takes days to process, the only way will be to get a cash advance.
A cash advance is usually a short-term thing that is payable during the next salary. This is also known as a payback loan that can typically go up to $1,500.
There are two ways to pay this back. The first will be to issue a post dated check with the original amount and accrued interest. The other will be simply letting the lender withdraw it online from the borrower’s account.
These lenders can be found in mini-malls and in the newspaper. After talking with a representative and filling up some forms, the money will either be given immediately or deposited into the account of the person.
People who don’t have time to go these places can do the same transaction online. The only thing needed is an Internet connection and after filling it up the web page, which can be done in less than 2 minutes, approval happens almost instantly.
Here are some frequent questions to do who would like more information about a cash advance.
Are the interest rates the same as banks? No. Cash advance lenders have been known to charge higher but the nice thing about it is that no collateral is needed when borrowing money.
Can the individual extend the term of the advance? Yes. Normally, people return the money after 16 days when the check comes in. Those who still need it are required to pay the minimum with an additional interest charge for another 2 weeks.
Will the borrower have to go through a background check? No because the borrower has already issued a post dated check or has given the bank account number so that this can be returned when the salary comes in.
Can anyone avail of a cash advance? No. Lenders will only transact business with those who are employed otherwise it will be difficult for the person to pay the money back.
Who are the ones who apply for a cash advance? Almost anyone can. But the majority is known to have cash flow difficulties or bad credit. This doesn’t mean people who have the means don’t because it also occurs once in a while.
Do banks make cash advances? No, because it is considered to be unstable and not profitable. There are some big lending institutions that do aside from the small stores that are located in a certain area.
There was a time that lenders dictated the interest rate. Since there has been a rise in the number of lenders all across the country, the government has tasked the Federal Deposit Insurance Corporation or FDIC to regulate the practice of cash advances.
Everybody at point or another will need cash. Since it is kind of shameful to ask money from others, the best thing then is an advance.
The nice thing about cash advances is that there are no long lines or collateral that needs to be put forward. Those who work there will not ask that many questions. All the person has to do is write a post dated check or give the account number so that money borrowed can be returned almost instantly to the lender.
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Resource: http://www.isnare.com/?aid=75627&ca=Finances
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