Responsible Borrowing and Short-Term Cash Advances
Cash advances—otherwise known as payday loans, check advance loans, fast cash loans and no-fax loans—are a controversial form of borrowing. However, for consumers caught with an emergency expense between paychecks, this lending option offers financial breathing room until payday arrives.
How Do Cash Advances Work?
A short-term cash advance ranges from $50 to $1500, and is available to most consumers, no matter what their credit score. There’s no credit check, and the application process can be completed online or over the phone. This type of loan is meant to be a short-term solution to financial emergencies, and should only be taken if the borrower knows he can pay it back within two weeks to a month.
How Do I Apply for a Cash Advance?
The application process differs between payday loan companies, but the basic process remains the same. To be eligible for a short-term cash advance, consumers must prove the following:
- They’re 18 or over,
- They have a verifiable income with checks coming at least every two weeks, and
- They have a checking and/or savings account in their name.
After loan approval, customers can receive their cash advance funds via direct deposit, by check or cash. When you’re in an immediate financial crunch, these short-term cash advances are often available within 24 hours—or even less. The loan process at a traditional financial institution takes much longer, and you may be excluded if your credit isn’t up to par.
Points to Remember
The decision to take out a short-term cash advance shouldn’t be taken lightly. Annual interest rates on payday loans are high, and delayed repayment can mean hefty fees. When you use this borrowing tool wisely, however, it’s an invaluable resource for managing difficult financial situations.
ACE Cash Express provides financial services, including payday loans, short-term consumer credit, check cashing, bill payment and prepaid debit card services
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10 Responses to “Responsible Borrowing and Short-Term Cash Advances”
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Responsible Borrowing and Short-Term Cash Advances…
Cash advances—otherwise known as payday loans, check advance loans, fast cash loans and no-fax loans—are a controversial form of borrowing. However, for consumers caught with an emergency expense between paychecks, this lending option offers financial …
Those cash advances could bcome runaway debt real fast also, so be careful!
Only if you were truly desperate – as in had no cash to buy food – should you think about these types of loans. They are a great way to spiral into debt.
These type of loans are a sure fire spiral into debt. Stay away!
How can these companies afford to offer loans to people who have terrible credit and could simply file for bankruptcy?
I agree with all the above comments…. ALWAYS ensure you know what you are getting into before you agree to get a payday loan.
Agree with everyone here – credit cards = bad, cash advances = worse. If you can come up with 100% of it to pay it off in a very short time span it’s OK – couple months at the most. Otherwise if you don’t have the money now, you really won’t later when you’re paying 30% interest. The rates are ridiculous.
Cash advances or payday loans can be a lifesaver for people who are faced with a true money emergency. But if you find that you’re constantly running short before payday, it’s time to examine your financial habits. Essentially, you’ve got two choices…spend less money, or make more money. I would always choose to make more money, and I read a great book recently that taught me how to use the skills and abilities I already have to make more money.
I think that when people take a hard look at their finances and start thinking differently, true change can occur. I always felt like I was just getting by, but after reading Loral Langemeier’s “Put More Cash in Your Pocket,” I realized that I have the power to make more money every month. Right now, I make more from my sideline work as a proofreader and an academic tutor.
If you feel like you never have enough, why not try making more? I thought this book was full of great advice. Check it out at http://www.liveoutloud DOT com/newcashbook.
These types of loans have a place in the market but you better know what you are getting involved with. Read all the fine print 3 times!
Thanks for information about these term of loan. When i apply for loan i’ll remember this point.