subject: Applying For A Cash Advance [print this page] The granting of fast cash advances has become a popular industry in the United States. Fast cash advances can also be referred to as payday loans. Research shows that the industry lends about $40 billion to at least a million Americans each year. There are several cash advance lending companies in various states. Lending companies have developed online payday lending as well. Online payday lending enables borrowers to apply for cash advances through the Internet.
Payday loans are fast credit accounts. Lending companies only allot two weeks for loan payment. The amount of borrowed money is the sum of principal, interest rate, and extension charge. Typically, cash advance companies charge a 15% to 30% interest rate for a loan transaction. The companies instantly deduct the loan amount from the borrowers salary. If a borrower cannot pay, a lending company may allow an extension of the payment duration. Usually, the company charges an additional fee for payment extensions. They double the interest rate for extension of payment.
Payday loans are one of the most convenient credit schemes. Borrowers can easily pay their loans. Unlike bank loans and credit cards, borrowers pay for loans through a one-time salary deduction. Likewise, lending companies implement a simplified process for loan applications. There are two kinds of loan applications, namely personal and online application.
Through personal loan applications, borrowers go to lending companies. They fill out application forms and present the necessary documents. Cash advance companies only request for four requirements: an existing bank account, stable employment, minimum age, and contact details. Generally, lenders require at least 3 months of employment. This ensures the presence of a stable income for loan payment. Moreover, some companies ask for contact details of family and friends. These serve as your character references. Lenders contact them when you are unable to pay your loan.
On the other hand, online application is a more convenient way of loan request. Websites of lending companies gather necessary information through application tabs. Borrowers fill out spaces or mark boxes for verification of requirements. Online cash advance applications are approved electronically. Therefore, loans are immediately deposited on a borrowers bank account.
Simplified application processes make fast cash advance a convenient credit scheme. Lenders require fewer requirements, and they approve loans in one day. Payday loans are helpful in times of financial emergency.
