What You Should Know before Your First Cash Advance

Getting your first cash advance can be a bit intimidating. Until you work with the cash advance industry, you do not know what to expect. Here are a few things that you should know before your first cash advance.

Where to Find

Businesses that offer cash advances are fairly common and there should be at least one in your area. There are over 10,000 businesses that offer cash advances in the United States today and that number is rapidly growing. If you do not have access to one in your local area, you can find a few online. With online lenders, you can conduct the entire process from the comfort of home.

Application Process

The application process is very simple. You will have a basic application to complete. The requested information will be standard personal information. They will want to know your name, address, social security number, phone number and a close relative that they can contact. You can get complete the application process in as little as 15 minutes.

Approvals

Approvals with this type of loan are a little different than with traditional loans. With a traditional loan, the lender will pull your credit file and base their decision largely on that. Therefore, you have to have good credit in order to get the funds that you need.

With a cash advance loan, the lenders decision is not based on your credit. They will not look at your credit report or run a background check. In most cases, they will simply want to know if you have a job, make enough money to repay the loan and do not have any outstanding loans with them. As long as you meet their basic criteria, you should be able to get the cash advance you need.

Interest Rates

One of the most important things to remember about cash advances are the interest rates. When you have never worked with a cash advance lender before, you may not think anything of the interest rates that they charge. Most of these loans are designed to be short-term loans. Usually the loan term is less than one month. Because of the short term, they charge you $50 or $100 in finance charges. Although, it may not seem like much, when you calculate it out, this could be as much as 300% APR. These loans are very expensive and you should only use them if you absolutely need to.

Compounding Problems

If you are not careful, you will develop the habit of using this type of program. If you are short on money during one pay period, there is a good chance that you will be the next as well. Therefore, you should only use this during extreme situations and avoid the high interest rates. Also, you should recognize that because of emergency situations or poor financial planning, you are paying someone money every month. Try to get out of your bad habits by making sure to pay the loans quickly.


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