A cash advance is a short term personal loan which is meant to cover emergency expenses until the next payday. The emergency financial situation can be anything from a medical bill to utility bills which you may need to pay. A short term advance loan will help you to get through your difficult days before you receive a salary.
Applying for a cash advance
Applying for pay day loans is easy. There are many payday lenders to choose from.
Application can be done online where you only need to provide the lender with a few things.
Firstly, they need you personal details like name and address. They want to know how much you need, in most cases short term advance loans are small amounts not going above $1500. The requirements however vary across cash advance lenders. Collateral and credit checks Short term cash advance lenders do not require collateral from the borrower neither do they carry any credit check on you. This means even borrowers with bad credit can apply. You do not have to worry about providing them with your credit information. Depending on the efficiency and requirements of the payday lender, you can get your loan within hours or after one day.
Interest rates and charges
The interest rate that is charged depends with the cash advance provider, some lenders charge high rates whilst some charge less. They are however regulated to charge up to certain rates but still the rates will vary from one lender to another.
Due to their nature cash advance loans are generally expensive because they are considered as high risk. The main reason is because there is no collateral required and the fact that there is no credit check done means the lender will be taking a high risk. Avoiding extra costs In order to avoid extra costs, it is important to pay off the loan within the agreed contract period. Do not borrow what you cannot afford, if you feel you might not be able to pay within the agreed period, then you need to advise the lender in advance. Final word
Some of them have got a grace period but some will charge extra. The good thing about payday advance loans is that they can help you during an emergency. The application process is usually easy and hassle free.