When emergencies or unexpected expenses arise, it can sometimes be difficult for us to get the cash we need. This is particularly true for people who live on a strict budget every month. Some people also depend heavily on their salary to survive. So when emergencies happen, they tend to borrow money from friends and family. The problem is that there is no guarantee that someone will lend them the money every time they need it. So what can be the next option? You may choose to apply for cash advances.
Personal Cash Advances
This is a form of short-term loan that aims to offer loanable cash to people who are in dire need of it. It can be in the form of a payday loan that makes it payable in a short period of 14 days or until the next payday. Some cash advance providers may offer a longer payment cycle, especially for non-starters. The amount of cash you can borrow may vary based on state spending practices.
Advantages of using cash advance services
• Money can be obtained within 24-48 hours.
• No need to worry about stringent credit and background checks. As long as you can show that you are employed or have a stable income, you can apply.
• Queries can be made through the web, by phone or through email. Most companies that offer this service accept initial inquiries online.
• It is not necessary to show or provide any collateral. You just have to make sure that you can repay the borrowed amount on time.
• Even those without a bank account can take advantage. Instead, they can have their money through prepaid cards.
• For people who are still in good repayment standing, applying for a second or third time loan would essentially be a breeze.
• Most companies also offer referral bonuses to people who can convince others to apply for a loan. Referral bonuses can be up to $500.
• These services are also linked to other money services. Being a good payor can automatically help you take advantage of other forms of loans.
Requirements
So if you’ve finally made up your mind and plan to apply for a cash advance soon, you must meet the following basic requirements to qualify:
• Are you at least 21 years old? Some companies also offer short-term loans to those over 18 years of age. This will largely depend on your proof of income.
• You have work? Submit your proof of income and make sure the documents are authentic.
• Having a bank account can also be an advantage. However, there are now establishments that use it as a secondary requirement.
How to take advantage of the cash advance
There are generally two ways to take advantage of this service:
1. Going directly to money service establishments. These companies are designed to offer quick cash loans through various means: cash advances, check cashing, payday loans, secured loans, etc. There are also those that charge digital money such as PayPal or Bitcoins. Since they provide a hassle-free loan application with minimal requirements, you can expect to pay amazing APRs or interest on your loan. Most of these services will also require borrowers to have an active or existing bank account.
2. Another option is to use a charge card or credit card. Credit cards authorize cardholders or card users to withdraw cash directly from ATMs. Keep in mind that there is always a limit when it comes to withdrawing cash from credit cards. Most cash advance providers charge 3-5% interest and will require users to pay the amount within 30 days. The advantage of using this method is that it is possible to withdraw cash in any state. On the other hand, cash advance services are only available in certain states.
Important factors to consider before applying for any type of loan
Cash advances, like all other types of loans, are not ‘free money’. They are affordable, but they also need to be repaid. Before you apply, you should understand your financial responsibilities. You need to understand that cash advances require massive interest and fee that must be paid in a very short period of two weeks. Please note that both federal and state laws apply in terms of requirements and penalties.
Each state has its own law regarding bad debts, bounced checks, or returned checks. Most merchants will initially contact you if there are insufficient funds in your account. If you still don’t pay your loan, a collection agency may take over. This will also greatly hurt your chances of renewing your loan. Also, it can tarnish your credit score, which will impact your ability to get loans directly from a bank, buy a home, etc.