Cash advances are brief term loans that you pay back on your next payday. Most cash advances are normally three hundred dollars or less; although the installment loan requires a number of repayments over an extended period of time. Unlike the cash advance, it is a long term loan. A typical example of an installment loan includes the automobile financing. Listed here are reasons why cash advances are superior to installment loans:
You only have to fulfill the basic requirements to qualify for a cash advance. One of the requirements: is a steady income stream that could be verified. Unlike the traditional loans – that require collateral – there is no need for collateral. The cash advance lenders are usually interested in the stability of one’s income, which for them, is proof that you are able to pay the loan back. One other requirement for the loan is being a resident of a certain neighborhood. And, you should have a checking account that is active.
Additionally, there is an age constraint in terms of those who have access to this loan. The minimum age is 18 years and above. In most cases, people with permanent jobs are the one that meets this loan requirement. The cash advance lender does not consider your credit rating – only your ability to repay -in case, you have a poor credit rating
How Fast You Can Get The Loan
It takes the cash advance lender a few minutes to approve the application, but also for the application to be fast and successful you have to provide the lender with all relevant information and it must be correct. The application is easy and quick; unlike the installment loans where you have to fill the lengthy forms. Also, when it comes to transferring the money to you it only takes a few hours, meaning you’ll probably have the funds the same day or latest, the next day. The installment loans can take up to fourteen days – to get approved – meaning the loan will be of little aid in case of emergency. The great thing with cash advance lenders is: they usually notify you if you don’t qualify for the loan. You can look for alternative means to get cash, and whether you have qualified for the loan.
A cash advance is very convenient since all interaction between both you and the lender can be done online. This helps you save the hustle of experiencing to book a scheduled appointment with a loan officer. Using this loan you will definitely send the application form from the absolute comfort of your workplace or home. You don’t have even to call the financial institution several times for you to get the cash. Remember you have to meet the loan officer in person for you to get an installment loan.
One other convince of this loan is: the fact that the loan can be spent by you in anything including repairing your car or investing in your water service bill. Most installment loans are issued for a purpose that is specific. No matter the emergency for example, a home mortgage can only be used to pay for the house and not any bills. Also, the paperwork associated with a cash advance is quite minimal from time to time. Some lenders may not ask you for almost any document meaning there is no faxing; however, you can find those that insist you send out them proof of your earnings. The thing that is good is that it simply can take you just a few minutes, to fax the cash advance lender all of the relevant documents.
A cash advance is a fast solution for any financial emergency. There is no need for good credit that or collateral to get cash from a cash advance lender. However, it is your obligation so that the borrowed cash is repaid on time, otherwise you shall suffer from lawsuit and penalties.
Eligible For A Higher Amount
As a borrower, cash advance lenders will limit the total amount of loans that they distribute. And, will limit your loan based on your financial behavior. Remember, the actual quantity of loan which you get is dependent on the income that you generate on a weekly basis. It is advisable to always pay the loan within the specified time. You can access more money in subsequent borrowings. The lender will increase the amount of loan based on how often you pay back.
The cash advance lenders are guided by the laws regarding their state, in terms of the utmost or amount that they can lend. Through the application process is when you understand how much you qualify to borrow. Remember prompt repayment for the loan creates a relationship that is good your casdh advance lender who will always provide you with an instant solution in case there is an emergency.
Your Credit History
A lot of people view the short repayment period as a shortcoming. Since, associating with a cash advance. You may want to protect your credit history, it could increase your ability to get a higher amount in the future. To my point, let’s take an example of an installment loan, when you borrow an installment loan it shall take you 1 to 2 years to settle the loan. During the next couple of years, anything can occur. For example, you can easily lose your job and your source of income will dry up. This implies it’s likely you’ll miss some installment payments on your loan due to the fines and penalties incurred as. If you look for alternative source of income and this could affect your credit rating and an increase in the cost of the loan.
Credit cards is reported to be convenient but so that you can protect your credit history, you should be well disciplined when it comes to spending. Most cardholders do confess that they battle to control their spending. This results in them spending a lot more than they are able to afford, hence further affecting their credit rating.