A cash advance loan may be a great option for you if you are in quick need of cash. After all, everyone has a financial emergency from time to time. Sometimes something unexpected happens and you end up having a financial problem just when you can't afford it. Well, in this case, a cash advance may be the way that you can quickly get the money that you need to deal with the problem quickly. Not sure of all these loans entail? Here's a closer look at important information you should know.
What is It?
First of all, you may be wondering what exactly a cash advance loan is. Well, it is also known as a payday loan, and it is a short term loan that is usually given to you until the next time that you get paid. Amounts can vary between $50 and $1500, although some states now have limitations on how much can be borrowed at one time from payday lenders.
No Credit Checks
One of the great things that people enjoy about these loans is that there are no credit checks to go through. If you have less than perfect credit, getting a traditional loan can be next to impossible. These lenders never even take a look at your credit, so getting the loan is not a problem, even if you suffer from bad credit.
If you are in a position where you need fast cash, a cash advance loan is an excellent option. Once you apply for the loan, if you are approved, you'll probably have the money in a matter of a few hours. If you were to go with a traditional loan, it could take days to get approved and get the money you need. So when you have an emergency that requires quick cash right now today, this is a good option to consider.
What You'll Need
In order to get one of these loans, there are a few things you'll need. They will want your personal information on the application, a copy of your driver's license, and you'll also be required to show recent paycheck stubs so they can verify that you are working and can pay back the loan. Sometimes you may also need a bank account as well to qualify for one of these loans.
A Word of Caution
Of course while there are some benefits to taking out a cash advance loan, it is important that you only use them with caution. Usually you'll have to pay the loan back in full the next time that you get paid. If you can't, the already high interest rates will get even higher. So, if you do decide that these loans are a great option for you, it's important that you use them very carefully. If you do not need the loan right now today, you are very likely much further ahead to go with a traditional loan from your bank or credit union, since the interest rates will be much lower. But sometimes an emergency cannot wait, and it is in these times that a cash advance loan can be just what the doctor ordered.