Be A Smart Borrower Of Cash Advances
There are always reasons people find themselves in need of money
. Cash advances are great options to help solve your cash problems. However, they are only to be used for urgent and emergent circumstances and not for just whatever you fancy to buy at the moment.
The cash advance industry makes it very easy for people to apply and be approved for money quickly. This is the draw for most people. They are real loans and need to be taken seriously however easy they may be to get.
Some of the requirements for being approved for a loan are that you be at least 18 years of age or older, have a valid I.D., a bank account and an income of at least $1000 per month. This does not typically have to be a job.
You could be getting alimony, child support or social security; anything you can prove that you get money as income counts towards this. Having a bank account is important because to repay the loan, the lender either needs a post dated check from you for repayment or a post dated draft to your account.
Even if you have bad credit, it can be easy to be approved. While borrowing from cash advance services may seem appealing, there are certain drawbacks that a person should keep in mind. Obtaining quick cash from one of these companies may lead to a lost paycheck, astronomical interest rates, fees or penalties, and a slippery slope into debt.
Most cash advance services lend money on the premise that they will receive their loan back on the borrower's payday. This means that the lending company holds onto the paycheck until they may cash it or the borrower will pay the company what he or she borrowed when it is their payday.
This may be problematic because the borrower may lose out on his or her paycheck. Consequently, this process may turn into a domino effect, where the borrower will need to keep borrowing funds in order to cover his or her paycheck shortage.
You might get sick and miss out on days of work and not have a full paycheck. Though if you are planning to pay back a loan you might do everything in your power to make sure you attend your days of work.
There is also the threat of high interest rates. Cash advances services may charge quite a bit of money in interest, which means the borrower will owe that much more money in addition to the original amount borrowed.
This is pretty standard for the industry and is not to deter you from getting a cash advance. The problem lies when you are not able to pay the loan back in time and you end up having a longer term than just a few weeks.
The interest adds up quickly and more fees may be applied to your loan if you have to extend your term with your lender. Lastly, a borrower may easily end up in debt through cash advance services.
As seen above, it can be very easy to not pay back the amount due in full, especially when combining both the original amount borrowed and the interest rate.
The longer it takes a person to pay back the loan, the more the interest rate may accumulate, which will cost the borrower that much more money down the road. There are always two sides to every financial decision.
The best advice is that you determine accurately if you can afford a cash advance loan and if you are responsible enough to pay it back when you are supposed to. Most often, people get into trouble with cash advance loans because they are ignorant of what they got into in the first place.
There are many factors to strongly consider before deciding to borrow from a cash advance service company. Choose a lender wisely, ask questions and read all fine print. As long as you understand the terms, you should have a great lending experience!
by: Jack Landry
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