There are a number of internet companies that make promises of a cash loan to almost anyone. What they mean by this is fairly obvious on the surface, in that a borrower can apply for and receive a cash loan from the offering lender. But who are these companies, and what do their offers entail?
The Cash Loan Company
A cash loan company is not a bank, but a money-lending agency that offers small loans with no necessary collateral. These companies promise that through their services, you cannot only be easily approved for a short-term loan, usually for sums between $50 and $500, but that you will receive your cash loan quickly. While these facts do stand close inspection, the story behind the cash loan from these types of companies does not end there.
How A Cash Loan Works
A cash loan business earns its income through the interest, or fees, that they charge for the loans that they offer. The applicant is normally required to provide certain personal information on their bank accounts as well as their employment, as well as supplying a check for the entire loan with fees included. The borrower agrees to repay the cash loan amount by their next paycheck. This can all sound simple, but there are pitfalls to avoid.
Don’t Fall Into The Cash Loan Trap
As mentioned, cash loan companies earn their money off of high interest rates. Often these interest rates are called fees, but no matter what they are called, it means more money that you have to pay on a cash loan. While a cash loan can help with current financial problems, if mismanaged, these loans can make things far worse in the long-term.
At least two things to know when looking into a cash loan:
- Before you apply for a cash loan, read everything that you can on the internet loan company. Ask questions, and make sure that you receive the information that you need. Make certain that you have a financial plan for repaying your cash loan. Don’t borrow more than you need, or more than you can repay with one paycheck.
- While a cash loan could help you today, don’t forget that the key to financial solvency is long-term financial planning, and avoiding unnecessary debt.
Do I Qualify For a Cash Advance?
Qualifications for a cash advance are pretty basic. A cash advance, in nature is designed to provide short-term financing for the borrower. A cash advance gives the borrower the opportunity to receive cash now and pay later. The repayment for a cash advance is set up on the borrower’s next paycheck. It’s comforting to know that any time you need extra money until payday a cash advance is available to assist you with your financial needs. How many times in your life have you wished that payday could come a little faster because of your demanding bills? How many times do you wish your due date on your bills would match your paycheck date? Many times a cash advance is used for exactly this situation.
To qualify for a cash advance there are some requirements the borrower must meet. Your lender will use the information retrieved from other reporting agencies like SCAN or Teletrack. Additionally, no fax is required for a cash advance so you can avoid paperwork.
Lenders do require that the borrower be at least 18 years of age and can provide identification to support that. You must also have a working history of at least six months at your previous employer to qualify for a cash advance. Lenders will require the borrower has a checking or savings account in good standing so they can transfer and withdrawal funds. Other general information such as your name, a contact number, driver’s license number, and proof of residency is required on the loan application.
It is very simple to qualify for a cash advance. Now, every time you find yourself in a financial situation that cannot wait until your next payday you can get a cash advance to solve your financial demands.