Secure a Cash Advance with These 7 Tips
The Basics of a Cash Advance
With our country barely struggling to survive in the face of a potential repeat recession, it’s relieving to know that a cash advance is fairly easy to obtain. When seeking emergency fast cash, there isn’t as much technical mumbo jumbo as people would think. You simply give the cash advance lender a current pay stub from your place of employment and provide a post-dated check from your bank account. However, there are a few minor details regarding the cash advance system that you should know.
The Lender is Not Responsible for Your Actions
The decision to get a cash advance loan should be used sparingly, because it can get out of hand. Lots of people scream and yell that cash advance lenders prey on the financially weak. Why yes, a cash advance looks affordable at first glance, but charges can really add up over the course of a few months. To make sure that you don’t end up sounding like other people with tainted cash advance experiences, or accuse cash advance lenders of predatory lending, here are seven tips to consider before getting a cash advance loan:
Getting Started with a Cash Advance
Be aware that the amount of money you receive from the cash advance will be considerably lower than the amount you write on your personal check. Of course, all of the finance charges ensued will be deducted from the cash advance based on the terms agreed upon between the borrower (you) and the lender (cash advance company). The check you write should have the amount of the cash advance, as well as the finance charges administered. Be alert and wise when it comes to the finance charges, because they can rise if the loan is not paid back by the time you and the lender agreed.
Have Enough Money for Repayment
You should place enough funds in your account so that you can cover the check amount you wrote. This will give you a reassured feeling that the money will be where it’s supposed to be, and the lender won’t have any troubles collecting repayment. However, if you don’t have enough cash to repay to the lender when the time comes, two options are considered: the lender could suggest that you renew the cash advance; they could also suggest that you consider another cash advance with a new amount. Keep in mind that new cash advances come with separate finance charges and additional late fees. These figures all add up to new and higher cash advance repayment amount.
Your State Could Make you Repay a Cash Advance in 30 Days
There are various state regulations that cover cash advances for only a 30-day term limit. Of course, this makes lenders use discretion when issuing cash advances, and some will not exceed 30 days for the borrower to pay back the loan. In this case, you become financially bound to repay the cash advance or rack up higher fees. To avoid any problems, the best thing to do is make sure you’re able to repay the loan within two to three weeks.
Cash Advances are for Financial Hardship
Cash advances are primarily useful when you run into financial hardships. A noticeable trend of most people has been to “roll over” the cash advance. Results with this particular trend reveal that majority of individuals pay back rollovers more than the original amount. Another result is that there is more pressure for you to repay the loan for more money.
Lender Decisions Aren’t Just Based on Financial Income
It isn’t surprising that cash advances are set up to be obtained by borrowers whose finances fall into lower income brackets and people who can’t get quick cash from other financial sources. Luckily, cash advance lenders rarely base their decision to lend on a person’s financial income; as long as they are able to repay the loan, chances are they’re approved.
Picking up on the subject of rollovers, cash advance lenders will sometimes automatically roll over the cash advance. There are other lenders who have agreements through contracts that restrict the borrower’s rights to clear the debt via bankruptcy filing. Other types of suits against the cash advance lender may also be covered. Keep in mind that cash advance lenders use these contracts to make sure they receive the money they loaned. That is perfectly logical reasoning.
The 3 Pros of Cash Advance: Easy, Hassle-free and Tempting
Cash advances are typically viewed as a last resort. Whenever a person needs cash now, they should use more spending discipline to make sure they don’t end up requesting another loan directly after receiving the first one. Hopefully, your conclusion on cash advances should now add up to three pros: they’re easy to get, hassle-free and very tempting. So use them with caution – and good luck!