Cash Advance Loans Becoming More Popular
A Real Recession Buster
Cash advance loans are becoming increasingly popular as the recession hangs on. Strap-cashed consumers are looking for more options when it comes to paying their bills and making it through to their next payday. When the monthly check doesn’t stretch far enough, there are few options. Personal loans through traditional banks are difficult to obtain and their application processes are not conducive to meeting immediate financial needs.
This is where the unique features of cash advance loans come in. Cash advance loans are exactly what they sound like. If a customer is accepted, they receive a cash advance against their next regular paycheck deposit. Cash advances are small, short-term loans designed to plug a gap in finances without the need for longer-term, high-interest bank loans. For qualified customers they can substitute for high-interest revolving credit cards too, keeping credit balances down.
Things to Remember
If a consumer qualifies for a cash advance loan, they need to recalculate their next month’s finances. They need to be sure they considered the repayment amount and how it will impact their budget. Be sure that the next paycheck is enough to cover the loan and normal monthly expenses. Cash loan providers always encourage responsible borrowing with their customers. The loan is meant to help qualified borrowers with immediate financial needs, not to put them into more financial struggles.
What Consumers Need to Qualify
To get a cash advance loan, consumers will need to meet some requirements. Normally to apply they need:
- To be over 18 years of age
- Be employed for a set period of time
- Have an active checking account with direct deposit
If the applicants meet the above requirements, they can apply for the cash advance. The great thing about cash advance loans is that a person can apply online within minutes. The decision as to whether or not they are accepted should be a momentary process. Their status should take just a few minutes to update. Also, the timing for payout, if qualified, is what draws people to these types of loans. No one can find a personal bank loan that pays out in 24 to 48 hours to accepted customers. It’s also impossible to find a personal bank loan that lasts only a few weeks.
How Cash Advance Differs from a Bank
Banks are in the business of making money. And that money comes from their customers. When a consumer tries to get a loan from a bank, they can expect to have to plow through a huge pile of paperwork. Banks are asking for tax returns, paystubs, and bank statements going back for months.
In addition, since the lending crash of the recession, banks are tight-fisted about underwriting. It’s difficult for even customers with perfect credit to procure loans at this time. Donna Friedman, chief loan officer at a Chase Bank, stated, “Our owners are giving us only a limited number of loan possibilities per month and we have to hand them out to only the customers who have proof that they will be able to repay the loan…we have to be strict with everything these days.”
Cash Advance = Emergency Funding
Cash advance loans are perfect solutions for qualified customers with emergency funding needs. They are simple to apply for, quick to payout if qualified and repayment is a worry-free structure. Customers write a check for the amount they are approved for and the lender will automatically deduct it from their account on the next payday. They can be a great way to find emergency funding for the accepted applicant.