Cash advances or online loans are short term ones advanced against the next paycheck of the borrower
. The advance amount is also small ranging between $100 and $1,500. As the repayment amount is very short, the interest rate is high. The interest rates generally range from 10 percent to 31 percent. For instance, if a person borrows $200 at a rate of 25 percent interest, his total cost of borrowing would be $250. Apart from this, he also has to pay an extra fee toward transaction process.
A person has to repay the advance on his next payday. However, many companies nowadays offer flexible repayment options in case something unexpected comes up and the borrower is unable to repay the cash on his next payday. Some repayment options available are as follows:
* Repaying loan in full amount on the next payday
* Paying the minimum amount and extending the loan term
* Paying more than the minimum amount and extending loan period
Unlike other loans, online loans do not require that the borrower should have a good credit score. A person with poor credit history can also take this loan. To be eligible for this loan the borrower should be at least eighteen years. He should also be a Canadian citizen. He needs to submit documents for proving these (age certificate and social security number). He also has be a permanent employee in a company for at least last 6 months and making a minimum amount of $1000 in a month. He also needs to have an active bank account. He has to submit salary stubs and bank account statement to the lender.
Online loans are obtained very fast. These are convenient to get and secure too. One can apply for online loans from the comfort and security of his own home. Applying online saves a person the burden of standing in a long queue and answering financial and personal questions in public. Most top-rated companies nowadays offer "no-fax" online loans. With these loans, a person has to fill out an online form only. He does not have to send any documents. The money gets electronically deposited into the bank.