Cash Loan Advances

By: EconomyWatch Content   Date: 1 December 2009

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Getting an advance on your paycheck could be an easy recourse for obtaining cash between two paychecks. In other words, you can opt for payday loans or cash loan advances if you are in urgent need of cash days before your next paycheck is due. All one needs to prove to qualify for a payday loan is age (18 years or above), regular job and an active bank account that a lender can have access to. One can also opt for a savings account payday loan. In this scenario, the money is directly deposited to the savings account of the borrower.

Cash Loan Advances: Advantages

The advantages of cash loan advances are:

  • A payday loan can be applied for online.

  • The whole process is paperless, without the need to fax any documents.

  • There is no need of a sound credit history to obtain a payday loan. So, even if a person is bankrupt or a defaulter, s/he can apply for such loans.

  • It does not require any valuable assets to be pledged as collateral.

  • In case a borrower finds it difficult to repay the loan by the due date, the loan terms can be extended.

Cash Loan Advances: How does it Work?

When you sign a payday loan agreement, you give authorization to the lender to access your account. The lender puts the money directly into your bank account and also withdraws the loan and interest amount on the subsequent payday. The deposit and withdrawal of money is performed electronically using the Federal Automated Clearing House (ACH). Also known as an EFT (Electronic Fund Transfer), this process ensures complete security of the information of the consumer. 

Cash Loan Advances: Extension Period

Most payday lenders require borrowers, looking for an extension of the due date, to submit their request at least three days in advance. One can request for an extension online, on the website of the lender. However, this convenience is accompanied by heavy interest charges. One can get the payment of loan extended by 15 days or up to four years.

One important aspect to consider is that in case your check bounces, you will not only have to pay the NSF fee to your bank, but also a return check fee of around $25.


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