Instant Cash Advance: What To Know And What To Do

Let’s say you have some financial difficulties and can’t wait for a paycheck to cover the cost of unexpected expenses. An instant cash advance might be the perfect and quick solution, as it can give you money instantly for a short period.

Best of all, applying for such short-term loans is easy, and it allows you to receive funds in your bank account the same day you are approved or within one business day. However, there are some vital things to keep in mind before the application procedure. Detailed information about a fast cash advance loan, including its main principles and basic requirements, is listed below.

How does a Cash Advance Loan Work?

There is no need to fill out large paperwork when it comes to instant payday loans. Unlike bank credit or finance company loans, they are fast and convenient. The main principle only includes four steps, as follows below:

• You give the lender a check for the amount of cash you want to borrow.
• You pay a fee to borrow the cash amount, even if it is for a week or two.
• The lender keeps your check and gives you money, which is less the fee they charge. · You need to pay the lender in cash on your next payday – the amount you borrowed plus the fee.

For example, let’s say you want to borrow $200 with a fee of $30 for two weeks. You need to give the lender a check for $230. The latter will keep your check and give you $200 in cash. After a two-week period, you have to give the lender $230 in cash to get your check back. In the end, it turned out that you paid $30 to borrow $200 for two weeks.

Once you understand the principle of a fast cash advance, let’s dive deeper into what to do before and during applying for this particular type of loan.

What Steps to Take Before Applying

At first, short-term loans seem like a simple and fast option to go. But due to this simplicity and ease of access, many borrowers can end up in trouble, especially when they don’t do the proper research beforehand. The steps below will help you to make a correct decision for a term of cash advance loans.

Compare Rates

Most instant cash advance loans have an annual rate (APR), meaning how much it costs you to borrow money for one year. This rate is based on different factors, including the amount of money you want to take, the borrowing period, and the monthly finance fee.

Interest rates for fast cash advances aren't as high as for payday loans. In that sense, credit card unions have a loan with an APR of 20%, while payday lenders could have an APR of 390% for two-week loans. Thus, before applying for a cash advance loan, be sure its interest rates can meet your loan needs.

Check other Alternatives

Instant Cash Advance are not the only way to get a short-term influx of money. If you find yourself in a difficult financial situation, you may also consider options like borrowing from friends or family, getting a loan from a bank, using credit cards instead, or getting a second job. Also, you might ask for more time to pay your bills by talking to a credit counselor or creditors for help.

Consider Basic Requirements

In America, fast cash advances are regulated at the state level, so lenders should abide by the guidelines of the states in which they operate. Each state usually has some placed limitations and regulations on payday lending, and fees applied in certain situations. For this reason, requirements to get a payday loan will vary from state to state.

Before getting an online loan, try to get to know these laws and verify that your lender follows the guidelines of all the applicable state statutes. In addition, educate yourself on several basic things that most lenders require:

• Age verification: the borrower must be at least 18-year-old.
• Proof of income: the borrower needs to ensure a lender that they can repay the loan when it’s due.
• Address, email, and phone number: the borrower should provide their contact information to a lender to avoid further issues.

Choose the Right Type

There are different types of cash advances, including credit card cash loans, merchant cash advances (MCA), and payday loans. Some requirements vary from one type to another. To make sure this form is a good fit for you, do proper research first to know the specifics of your loan before applying.