Cash Advance Online
Considering applying for a Cash Advance Online for the Holiday ?
Holidays often bring a cash flow crunch to consumers. Activities such as family travel, gift purchases, and food for large gatherings, put pressure on the family budget. Credit cards have traditionally been used to aid with consumer cash flow during the holiday. But some consumers may be caught short with a high balance on their cards, or my simply have insufficient access to credit lines to meet their needs. The short term cash advance, or payday loan, was created to bridge such cash shortages. These lender practices have also attracted borrowers who seek cash advances with bad credit, though there are better alternatives as we discuss.
In recent years access to a cash advance, or payday loan, online via the internet has skyrocketed. There are dozens, if not hundreds of lenders that have expanded their financial services to include online cash advances to consumers.
Typically these loans are for small amounts, between $100 and $1,500, and require repayment in 14 days. However, there are some lenders that have created short term cash advance installment loans under this program with limits up to $3,000 and allow payments over 3-4 months.
How does a online cash advance work ?
Whether referred to as a cash advance or payday loan the process is the same. The borrower chooses a lender, whether online, or through a local lender. The requirements are minimal, proof of employment ( typically a months worth of pay stubs or tax return ), a checking account in good standard, meaning no negative balances or over drafts in the preceding 30 days, and at least 18 years of age. The lender will approve the amount of the loan based on the borrowers income. Approval typically takes just minutes on line, and funds are transferred to the borrower’s checking account the next business day.
The period of the loan is typically 14 days, or until the next payday for the borrow. Most lenders offer an option to roll-over or extend to period of the loan for an additional fee. When the period expires the lender is redeemed the amount of the loan plus fees and interest.
What does it cost ?
Cash advance loans can be very expensive which is why they generally are viewed negatively by credit counselors or financial advisers. Typically a fee is charged, plus interest. The fees and interest will vary depending on the amount of the loan and length of the loan. It is not uncommon to repay 200% of a loan if it is not repaid quickly. For specific information on costs, fees, and payment terms, refer to the pages we offer here for each type of loan and a directory of cash advance lenders.
You should also read what the FDIC has to say about your rights and responsibilities for these loans