What is a Cash Advance?

A cash advance is a common type of loan that is provided by a short-term loan provider. Cash advances have become very common in part because they are simple to access. The basic idea of a cash advance is to provide money on a short-term basis. When you have trouble financially, sometimes you need a little extra money to get through until the next payday. Here is some basic information about cash advances and how they work. 

Where to Get One

Cash advances are very easy to come by in the United States. Currently there are more than 10,000 cash advance stores in the country and more seem to be sprouting up every day. Even some businesses that are not necessarily a cash advance store, might still offer cash advance loans. You should be able to locate an advertisement for one in your local phone book or online. Even if you cannot find a store in your local area, you could access one of several online cash advance companies. 

Application

The application process for a typical cash advance is usually quite simple. Most cash advance stores have a simple form to fill out. They will request the basic information that comes with most applications. You will have to provide your name, phone number, address, social security number and contact information for a near relative. Most of the time, they will not check your credit or verify anything. They will most likely want to know that you can repay the loan so they may check on your employment situation. 

How They Work

Once you are approved for the loan, the process will go very quickly. They will wire the money into your bank account usually within 24 hours. You do not pay any upfront fees as they know that you do not have any money at the moment. When the money hits your account, you are free to use it as you see fit.

The terms for a cash advance are usually simple as well. They will give you a deadline to repay the money. Some cash advance stores will ask for a post-dated check to hold the loan. They will cash the check on the date that is presented on it. The amount of the check will be for the entire amount of the loan as well as any fees that they charge. 

Risks

While this type of loan can help you in a pinch, there are some risks associated with it as well. With the typical fees that come with a cash advance, you can expect to pay more than 200% interest on the loan. Therefore, these loans do not come cheap. You should not undertake one of these loans unless you are in a dire situation. 

Getting into the habit of using these loans can effectively cripple you financially. This should be designed to be a one-time fix for you and your situation.


Need Cash Now? Get a Cash Advance