subject: Money Matters: Analyzing Cash Advances [print this page] Anyone who has tried to get a loan from a bank knows that it's not always easy. The bank wants to be sure that borrowers are responsible with their money. The world of personal cash loans is a bit different. They can be a life saver but only if you use them properly.
One of the biggest benefits of a cash advance type of loan is that your credit history means little. A lender is mostly concerned with your current ability to pay and not your past credit mistakes. The basic requirements are only that you're an 18-year-old US citizen who has a bank account and can show proof of a regular income. There is very little to worry about through the short process. There's a high risk for lenders that some loans won't be repaid on time or at all. As steep as the danger is for the lender, the reward for the borrower is just as high.
When used responsibly, a cash advance is only beneficial. It can't be stressed enough how crucial it is to pay your loan back promptly. This is true for personal cash loans even more so than many other loans or bills. Fees for repaying late are notoriously high. You don't want to make problems by adding charges you can't afford. Instead be ready to repay the full amount of your loan on the due date. Some companies may even allow you to repay ahead of schedule. Borrowing as little as needed is one good way to help ensure you can repay it. Loan companies vary, but the general policy is not to loan more than $1,500. If you know when your next payday is coming and how much you will earn, think about how much you can afford to repay.
For many people a cash advance is an opportunity to get a short-term loan for an emergency situation without facing fees on a bank account overdraft or for a bounced check. However, if you don't repay the company as you should the incentive was wasted. Undoubtedly your hurting your credit and your peace of mind.
Quick and easy are two good ways to describe the cash advance system. You should still remember to take the process seriously. The financial reward for you can be high and so can the consequences if you don't act wisely. Payday loans are only as valuable as you make them.
