Cash advances are a commonly used
unsecured loan. These advances are used by
millions of people across the country each
day. No credit check is involved, because
these are true advances and not a credit
process. Borrowers may receive amounts from
$100 to $500 or more, depending on income,
until their next payday rolls around. A
typical loan time period runs about two
weeks and will not be less than 7 days. For
those persons who only are paid on a monthly
basis, the loan period is until their next
pay cycle.
Income from a regular legal source is the
basic requirement for obtaining cash
advances. Also called payday loans, these
simple cash transactions have a few other
qualification rules. The borrower must be an
adult and have some type of bank account
that will accept electronic transactions.
Most people use their checking account when
applying for this type of advance.
Military personnel have special borrowing
rules; most cannot borrow from a payday
lender. Everyone else can apply and most
will be quickly approved,
regardless of credit score or history. If
the borrower has defaulted previously on a
payday loan, they will probably be denied a
new one. This is not due to any credit
history information; the cash lender
industry has its own system to track
non-payers.
Borrowers must provide some proof of income.
This can be a pay stub, a government
statement of income or other proof of
regular income. Lenders may
also ask for personal references. All loans
are made in cash or automatic deposits to a
bank account. Repayments are done in cash or
by an automatic
withdrawal from the borrower's bank account.
A
cash advance loan is very helpful when
needed. There are few questions to answer
and no collateral is needed. At a land based
payday store, many companies ask the
borrower to fill out a valid check and leave
it behind until repayment, at which time
they get their check returned. Online
lenders do
everything automatically through the ACH
withdrawal and deposit systems.
Payday
advances can be used for any purpose; there
are no restrictions. At a store, the
borrower leaves with cash. If the borrower
uses an online lender, there will be a fast
deposit into their bank account. This
usually takes from an hour to a day. Many
people use payday loans to pay for emergency
bills or repairs; others use it for fun. How
the loan is used is no one else’s business.
Interest rates make these loan fees run
about $15 to $25 per every $100 borrowed,
which is acceptable to millions of people
daily. Cash advances are
preferable for many when compared to
collateral loans, loan shark payments or
pawnshop transactions.
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