Cash Advance – Things to Consider

A cash advance is a short-term loan that uses your paycheck as proof that you will be able to repay the loan rather than doing a credit check. Your first payday loan can be for $100 to $500. Since you can have the money by the next business day, cash advances are useful when you need money right now.

However, cash advances aren’t free. But if you have to have the cash now and it’ll cost you more not to get the cash advance, then do a little research on cash advance companies. Some things to keep in mind before getting a Cash advance loan.

• Figure out how much money not getting the cash advance loan will cost you. How much money will you have to pay in overdraft fees or bounced checks at your bank? How much money will you have to pay for a cash advance on your credit card?
• Compare fees at different cash advance companies. Not all cash advance companies charge the same amount or in the same way. Some loan companies charge a flat fee, while other cash advance lenders charge an interest rate depending on the length of the loan.
• Compare how long before you’d have to repay the loan. Cash advance terms can go from four to eighteen days, or until your next payday.
• Compare how much money it’ll cost you to roll over the loan if you can’t repay the loan

Cash advances work like this:

• You fill out an application and you may have to provide the lender with items such as bank statements, paycheck stubs and a photo ID.
• You sign a cash advance loan agreement, write a postdated check to the lender, and receive your money.
• Your check is held until your loan payment is due - usually two weeks. The lender then deposits your check - unless you have replaced the check or have already repaid the cash advance.

The loan agreement that you are required to sign is a legal document that obligates you to repay the cash advance loan. It also sets forth a lot of important information. Be sure to take note of the following items:
Amount Financed: The amount of credit provided to you or on your behalf. (This is typically the amount of the cash advance that you will receive.)
Finance Charge: The dollar amount the cash advance will cost you, or the amount of interest you pay for receiving the cash advance.
Annual Percentage Rate (APR): The cost of your credit as a yearly rate. Because these loans are small, short-term transactions, the APR on a cash advance is typically higher than on a more traditional type of loan.
Total of Payments: The amount you will have paid after you have made all payments as scheduled. (This is the amount that you will write your postdated check out for.)

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The loan agreement you sign legally obligates you to repay the cash advance so be sure to read the contract before signing it and retain your copy for your records.
If you have not renewed the cash advance or paid it in full, make sure you have sufficient funds in your checking account on the due date of the loan so your check clears when the lender deposits it.
If you cannot or do not repay the cash advance, the lender has the option to seek a money judgment against you for the face amount of the check and court costs; and, if they were disclosed in the contract, any late charges, interest after maturity, and NSF fees. Once a money judgment is obtained, a lender may attempt to garnish your wages. Lenders may also list past due accounts with the credit bureau. This may affect your ability to get credit in the future.
A cash advance may be helpful when you are having temporary cash flow problems or are facing a financial emergency and need money on a short-term basis. You should attempt to pay your cash advance in full when it matures. If you are unable to do that, you should make every effort to pay at least part of the amount financed before you renew the transaction.

Now it is even easier to get your money when you need it. Our online application process does not require any faxing whatsoever. Instead you will sign all of your documents electronically. In some circumstances, additional documentation may be required if the information in your initial application cannot be verified. Start your cash advance loan right now with our revolutionary electronic process.