What is a cash advance
February 8th, 2016
What is a cash advance?
If you have ever applied for payday loan, you will easily understand the main point of cash advance loan. They are almost the same, more than that they are often considered as two names of one credit instrument. These short-term lending options are considered to be very popular with consumers because they are available at any time and almost without paperwork and tough requirements. The borrower gets some quite small cash amount for his current and usually emergency needs just in advance of his paycheck. Most lenders offer a short repayment period lasting about a month but some of them can step out and give 3 month loans. Regardless of the term a borrower is expected to pay a fee, the size of which still depends on duration of the set repayment period. The amount of loan available depends on a borrower’s income and legislation limitations being in force in the state. Typically it makes from $100 to $1 000. The interest rates are very high here.
What is the difference?
Payday loan Las Vegas are quick and easy to get. They are especially convenient for those who do not have credit cards or when the limits on a credit
card are not enough. Lenders usually require showing personal identification and proof of income in the form of a bank statement for several months or other
document. The applications can take about half an hour and can be arranged even online. It is important that a borrower is not expected to secure the loan.
Types of cash advances
One type of cash advance loan is payday loan as such. It is structured the same way and should be repaid on the next payday of a borrower that is why
its repayment term is about a month. It is unsecured also.
When getting cash is costly?
It can turn out that cash advance loan occurs to be the costliest way to receive the needed cash due to a range of various fees and expenses, which are not included in fees of payday loan. The first one is cash advance fee equal to 2%-5% of the loan amount, which is paid even before the moment when a borrower gets the money. There is no way to avoid it. And of course a borrower will pay interest that is usually high as we have already mentioned and it is accrued just on the day the loan is taken out without any grace period. To the contrast there is a grace period with a credit card and that means a borrower can use the cash without any interest during about a month. So if a borrower wants to save, he should repay a cash advance as soon as possible.
Pros and coss
Summing up we should honestly and shortly outline the advantages and disadvantages of this lending option.
We Serve All States of America
District of Columbia (DC)
New Hampshire (NH)
New Jersey (NJ)
New Mexico (NM)
New York (NY)
North Carolina (NC)