What is a Cash Advance Loan?

Home
>
Loan
>
What is a Cash Advance Loan?

What is a Cash Advance Loan?

A cash advance loan is a short-term loan secured by your paycheck. It is also known as a "Payday Loan".

A cash advance loan is a quick and confidential way to get a cash advance until your next payday.

A cash advance loan is a short term, high rate loan, where the lender requires the loan to be repaid on your next payday.

Your funds can be used for anything you like, such as car bills, phone bills, medical emergencies, etc.

From time to time, we all find ourselves short on cash between paydays and this mainly occurs because we never know what's round the corner. Cash advance loans are a quick, easy and confidential means to relieve your financial situation.

All you need is a checking account in good standing and a steady paycheck to obtain cash till payday. You will need to be employed, have a permanent address, and an active checking account.

Cash advance loans, also referred to as payday loans or check advance loans, are short-term loans to help overcome various short-term financial needs.

The purpose of a cash advance loan is to provide a way to pay for emergency or immediate expenses that cannot wait until your next payday.

People often choose cash advance loans to cover small, unexpected, expenses and to avoid costly bounced-check fees or late payment penalties and other less desirable short-term credit options.

How does it work? When a cash advance is approved, usually the borrower authorizes an automatic bank withdrawal, or writes a post dated check to the lender for the amount of the cash advance, plus the lenders fee. The lender then gives the borrower the amount of the check, minus their fee.

The fees charged for a cash advance are typically a percentage of the amount loaned. Lenders are required to provide a truth in lending disclosure that shows the full cost of the loan.

You can apply and receive loans as often as you need to as long as your previous loan has been paid off.

The term of the cash advance loan usually ranges from about one to two weeks, with time extensions available, but more fees are charged for each extension.

If you do not have the funds available to repay the cash advance loan on the due date, you should contact the lending company as soon as possible and make arrangements for an extension. However, this can be costly with additional fees and interest charges applied.

While the fees can be high, they can be less than the alternative expenses, such as, late charges for utility reconnection, rent penalties, or bounced checks.

If you decide to use a cash advance, just remember that it is only a short term loan, and any extensions can be very expensive.

Borrow only as much as you will be able to repay with your next paycheck and still have enough money to live on until the following payday.

You may freely reprint this article provided the following author's biography remains intact, including the live URL link:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

In The News:

Suzlon Rebounds as Loans Promise to Avert Default
BusinessWeek
By Natalie Obiko Pearson on May 25, 2012 Suzlon Energy Ltd.'s (SUEL) convertible bonds are rebounding from a four-month low after India's biggest wind-turbine maker obtained loan pledges to avoid default in the coming three weeks.

and more »

Christian Science Monitor
Student loan proposals from both parties denied
TheReporter.com
By AP WASHINGTON (AP) -- The Senate rejected dueling Democratic and Republican plans on Thursday for averting a July 1 doubling of interest rates on federal college loans for 7.4 million students, pushing back efforts to resolve the election-season ...
Psst, students. Still hope for low-rate student loans, despite Senate balkingChristian Science Monitor
Senate kills both sides' student loan plansThe Tennessean

all 522 news articles »

China Banks May Fall Short of Loan Target as Demand Slumps
San Francisco Chronicle
May 25 (Bloomberg) -- China's biggest banks may fall short of loan targets for the first time in at least seven years as an economic slowdown crimps demand for credit, three bank officials with knowledge of the matter said.

and more »

Inpex, Total seek $20 bln loans for Australia LNG -sources
Reuters
Export credit agencies to drive funding * Deal shows investor appetite intact for well advanced, high quality projects * Japanese banks to drive pricing of loan By Sharon Klyne and Wakako Sato SYDNEY/TOKYO, May 25 (Reuters Basis Point) - Inpex Corp and ...

and more »

ECB loans, rate cut view pull down Euribor rates
Reuters
FRANKFURT, May 25 (Reuters) - Key euro zone bank-to-bank lending rates fell to new two-year lows on Friday, dragged down by the ECB's recent deluge of ultra-cheap bank loans and a growing expectation it will have to cut euro zone interest rates again ...

and more »

Home loan: prepayment helps
Hindustan Times
A home loan is usually the biggest debt that a person takes on during a lifetime. Given a long tenor and high amount of loan, the total interest you pay to the lender is almost as big, if not bigger, as the loan amount itself.

and more »

Oregon Bankers Association Celebrates Small Business Week with Tips on ...
MarketWatch (press release)
SALEM, Ore., May 25, 2012 /PRNewswire via COMTEX/ -- In honor of National Small Business Week (May 20-26), the Oregon Bankers Association (OBA) has issued tips to help small business acquire a loan from Oregon banks. The OBA has also developed a small ...
Deadline to Apply for SBA Economic Injury Disaster Loans in Rhode Island is ...U.S. Politics Today
Deadline for New York Private Non-Profit Organizations to Apply for SBA ...DigitalJournal.com (press release)

all 15 news articles »

Payday Loan Companies on Loans.net Find New Customers in Recent College ...
MarketWatch (press release)
NEW YORK, May 25, 2012 (GlobeNewswire via COMTEX) -- via PRWEB - For years, payday loans were used by a specific group of low-income wage earners in the US, but that has now changed according to a new study by ThinkFinance, which offers banking ...

and more »

Failing students on loans
msnbc.com
Gerry Connolly, D-Va., joins Chris Cillizza to discuss the student loan debate taking place on Capitol Hill. >>> congress rejected calls from president obama and mitt romney to keep student loan rates down and both pears are paving the way for rates to ...

MLive.com
Federal lawsuits for student loan recovery far less common in West Michigan ...
MLive.com
comThe number of lawsuits filed for student loan recovery is far larger on the east side of the state of Michigan than in West Michigan. GRAND RAPIDS, MI -- If you've defaulted on your student loans, you're far less likely to wind up in front of a ...

and more »

Google News