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Pros
- Ease of use.
- Simple application process.
- Large number of trustworthy lenders.
- No fees.
- Flexible loan terms.
- High security.
Cons
Not available in some state.
Small maximum amount to borrow.
No pre-qualification.
Pros
- Long-lasting presence online.
- Good standing.
- Customized offers based on applicants' individual needs.
- A convenient website with easy registration.
Cons
Not a direct lender.
LoansAngel hides the WHOis information.
The FAQ section could be more extensive.
Pros
- Free to use.
- Website's good quality and intuitive navigation.
- Updated SSL encryption.
- They don't check financial health.
- Flexible conditions for different borrowers.
Cons
Sometimes, customers have to wait for money for up to two days.
Text messaging spam.
Pros
- Accepts first-time credit applicants.
- Loans can be funded one business day after the borrower agrees with a loan offer.
- Credit card consolidation loans provide direct payment to creditors.
- Borrowers can select and adjust their payment date.
Cons
An origination fee may be charged.
Borrowers can only select between two repayment terms.
There is no debt management mobile app.
Pros
- One-stop solution for finding all lenders.
- Easy 10-minute process.
- Fast transfers.
- Easy to navigate for new users.
Cons
Not a direct lender.
In case of late payments, Funds Joy will report a lower credit score to the credit agency.
A borrower must earn at least $800 per month to be eligible for a loan.
Pros
- No additional fees.
- Rates are competitive among available internet loan lenders.
- Provides a 0.5 percentage point rate reduction for setting up autopay.
- Satisfaction-guarantee service.
Cons
There is no pre-qualification option on its website.
Some lenders may ask for several years of credit history.
ExtraLend isn't the direct lender, which makes the process lengthy.
Pros
Cons
Pros
Cons
Pros
Cons
Pros
- The Company provides commission-free American stock and EFT trading without inactivity and withdrawal fees.
- The process of creating an account is seamless, digital, and quick.
- The support center offers relevant and helpful answers.
Cons
The Company is only available to American residents.
There are limited products.
The research tools are not advanced.
Pros
Cons
Pros
Cons
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Compare Your Cash Advanced Loan Options
What is a cash advance?
A cash advance is a short-term loan granted by the credit card issuer. Cash advance allows users to use available credit to borrow money. If a person is short of money, he or she may pay a fee to borrow from the credit company, whether or not he or she receives a paycheck within one or two weeks. In addition, the recipient of a money loan is required to repay the loan at certain interest rates.
A money loan involves withdrawing money from the remaining limit of a person's credit card. The credit card company to which the borrower applies for this type of loan generally determines the borrower's money advance limit. This limit is part of the credit card limit. Those who have a credit card with an available line of credit are free to request a cash advance until the limit is reached. Cash advances are useful for paying debts. These can be debts incurred on another credit card.
Differences between cash advances and payday loans
Cash advance credit cards and payday loans are ways in which people can borrow money. While cash advances can only be obtained with a credit card, payday loans can be obtained from online or in-store lenders. Short-term loans have fast turnaround times and are obtained with minimal requirements.
One difference between the two loans is the amount you can borrow. For example, you can borrow between $100 and $1,000. In contrast, a payday loan limits borrowers to a certain percentage of their credit card limit.
Payday loans are also known to plunge borrowers into serious debt. This factor has prompted some state governments to legislate to prevent debtors from falling victim to these loans. As a result, consumers often see a payday loan limit of between $100 and $1,000. The amount that can be borrowed with this type of loan also depends on the state in which the borrower resides.
On the other hand, a cash loan limits the money that can be borrowed to a percentage of the credit card limit. This is usually a few hundred dollars. Credit cards may also set periodic limits on cash advances. These periods can be daily, weekly, or monthly, with a daily limit not to exceed $500.
Repayment of a payday loan is also much faster than that of a cash advance. A cash loan begins accruing interest immediately, but the borrower can defer the debt over the long term if desired. Interest also accrues immediately on a payday loan, but the repayment period depends on the lender from whom the borrower obtained the loan. Some lenders may give the borrower more flexible repayment dates, while others require payment as soon as the borrower receives his or her next paycheck.
Another difference between cash loans and payday loans is the interest rates charged. Cash loans require payment of an initial fee, which is usually a fraction of the loan amount. The borrower then pays an annual percentage rate of charge (APR) of about 24 percent. In the case of a payday loan, the lender charges the borrower an initial fee based on the amount borrowed. For example, for a $100 loan, the borrower pays a fee of $15-30. As a result, the APR for this loan is about 400%, since the repayment period of a payday loan is about 14 days.
Advantages of cash advances
The advantages of using cash advances are as follows:
- Access is quick. This is perhaps the most outstanding feature of a cash loan. This loan allows users to access it quickly, without having to go through laborious approval processes. As a result, borrowers receive the money immediately in their accounts, without having to wait for banks to service them.
- Credit does not limit lending options. With a cash advance, borrowers do not have to worry that their credit is a major approval factor that determines whether or not they will receive the loan. A particular cash loan limits people based on their credit card funds, but borrowers do not need to apply for new credit to take advantage of it.
- It is easy to access. There is no need to fill out countless documents to obtain an advance loan. People appreciate the fact that they do not need collateral for the loan.
Although cash loans offer the above advantages to users, they can have some disadvantages that borrowers need to consider before jumping in headfirst. Areas in which cash loans could be improved include:
- High finance charges. Although these loans are obtained quickly, interest rates and fees are quite high. For example, finance charges can be as high as 300-500% of the APR.
- Inability to accumulate credit. Although it is interesting to note that lenders are not interested in a person's credit history, the loan does not allow the borrower to improve his or her credit. This is because lenders do not report the borrower's payments to credit card bureaus.
- The ability of the loan to trap the borrower in debt. Given the high expenses mentioned above, it is likely that a person will not be able to repay the loan on time. The lender may then offer the borrower a new loan with new expenses to refinance the debt. This can create a cycle of debt that is difficult to get out of.
Money loans with bad credit
Borrowers can get a cash advance even if they have bad credit. This is because lenders generally do not check the borrower's creditworthiness. If you need a money advance, you only need to provide information about your employment, particularly your pay stubs.
Is it possible to get a money loan?
There are not many conditions that need to be met to obtain a money advance. To apply for a money loan, borrowers must first fill out an online or paper application form. Lenders must ensure that the applicant has a prepaid debit card or an active bank account. He or she must also be at least 18 years old and have a source of income.
If the lending institution approves the loan, it will grant the borrower the requested loan amount, less any fees. Lenders may ask the borrower to write a check for the amount of the loan and fees. On the day following payment, the lender cashes the check or debits the loan amount and any additional fees from the borrower's checking account. The loan amount may vary depending on the lender or ceilings set by the state government.
Applying for a loan online is easy
Here is how to apply for a loan online at Finwower:
- Familiarize yourself with the available lenders. There are many on the market, including cash advance applications. Advance America is one of the reputable lenders that facilitate a transparent and reliable loan process.
- Determine the maximum amount of cash advance you need. This allows you to analyze whether the amount borrowed will be sufficient to meet your needs.
- Calculate the interest, fees and penalties you are likely to incur with the loan. This prepares you mentally and helps you avoid any unexpected financial surprises related to the loan.
- Complete the online application with your information, including your name, social security number and contact information.
- Once the application has been approved by the lender, you can receive the money. The most convenient way to receive the funds is by direct deposit into your checking account.
- Establish a loan repayment schedule to avoid damaging your credit rating, incurring more debt, or paying late penalties.
Final reflections.
At first glance, a cash advance may seem like the quickest and easiest way to get money. However, because of the high interest and fees involved, this type of loan can lead you into debt up to your neck. If you really need money, look for more attractive and user-friendly solutions that will not increase your financial difficulties. Try to find out the terms of this loan if it is your last option, but you should avoid it altogether.
Frequently Asked Questions
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Cash Advance Alternatives
Here are various alternatives to obtaining a cash advance, depending on your financial needs:- Credit Cards: In case of an emergency, consider using your credit card to cover expenses instead of resorting to cash advance loans. Ensure that you have available credit on your card to make the payment.
- Personal Installment Loans: You can obtain these loans from banks, online lenders, credit unions, and other financial institutions. Personal installment loans typically have a lower annual percentage rate (APR) compared to cash advances, and some lenders may even provide funds within a single business day.
- Payday Loans: Payday loans provide short-term funding until your next paycheck. However, exercise caution as they often come with exceptionally high interest rates, sometimes reaching as much as 400%. Rolling over payday loans can lead to a cycle of debt.
- Borrowing from Friends or Family: Consider borrowing from close friends or family members, as they can be reliable sources of financial support. To maintain healthy relationships, be sure to repay the borrowed funds on time and according to any mutually agreed-upon terms.
- Car Title Loans: Car title loans require you to use your motorcycle, car, or truck as collateral when securing a loan. Keep in mind that there may be an initiation fee, and failing to repay the loan could result in the lender repossessing your vehicle. Additionally, rolling over the loan can accrue extra interest and fees.
- Credit Union Payday Alternative Loans: To access loans through this alternative to cash advances, you must be a member of a federal credit union. These loans typically come with an interest rate cap of 28%, and you can repay them in manageable monthly installments.
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Terms and Fees of Cash Advance Loans
Cash advance fees are composed of interest rates and upfront fees. The interest rates for cash advances are often higher than those for balance transfers or purchases. The card issuer may also charge a cash advance fee, which is typically 3-5% of the amount of the cash advance.
Another fee is the bank or ATM fee, which is charged by the bank or ATM where the cash advance is taken out. Cash advances have higher APRs than regular credit card purchases and start accruing interest immediately. The interest stops accumulating when the loan is repaid in full.
Unlike regular credit card transactions, cash advances do not have an interest-free grace period. This means that interest begins accruing on the cash advance as soon as it is taken out. For regular credit card purchases, interest does not begin accruing until the statement due date.
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Are Cash Advance Loans Secure and Safe?
Cash advance loans are a type of unsecured loan, which means that the borrower does not have to put up any collateral to secure the loan. This makes them a relatively safe option for borrowers who have bad credit or no credit history. However, cash advance loans also tend to have very high interest rates, and the interest begins accruing immediately. This means that borrowers can quickly end up owing more money than they borrowed.
For example, let's say you take out a $100 cash advance loan with an interest rate of 25%. The interest on the loan will start accruing immediately, so you will owe $125 after one month. If you do not repay the loan in full within one month, the interest will continue to accrue, and you will owe even more money.
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How do cash advance loans work?
To get a cash advance loan, you typically need to:
- Provide proof of income and credit history.
- Receive a loan that you will repay with interest and fees on your next payday.
- Some lenders may require you to write a post-dated check or provide access to your bank account.
Here are some additional details about each step:
- Applying with a lender: You can apply for a cash advance loan online, over the phone, or in person. When you apply, you will need to provide your name, address, Social Security number, and income information. You may also need to provide your credit score.
- Providing proof of income and credit history: The lender will use your income and credit history to assess your ability to repay the loan. If you have good credit, you may be able to get a loan with a lower interest rate.
- Receiving the loan: Once you are approved for a loan, the lender will typically give you the money in cash or deposit it into your bank account. You will have to repay the loan, plus interest and fees, on your next payday.
- Writing a post-dated check or providing access to your bank account: Some lenders may require you to write a post-dated check or provide access to your bank account. This allows them to withdraw the money from your account on your next payday.
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What are the benefits of a cash advance loan?
A significant advantage of a cash advance loan is its potential for swift approval, often available even if your credit history is less than ideal. Furthermore, you have the flexibility to utilize the loan for various purposes, whether it's addressing unexpected costs or consolidating existing debts. -
What are the drawbacks of a cash advance loan?
The primary disadvantage of a cash advance loan lies in its potentially steep cost, marked by elevated interest rates and associated fees. Furthermore, failing to repay the loan on your upcoming payday could lead to the lender extending the loan, leading to further fees and accruing interest expenses. -
What are some alternatives to cash advance loans?
Certainly, there are numerous alternatives to cash advance loans to consider, depending on your specific financial needs. For instance, if you're aiming to consolidate debt, you might explore options like personal loans or balance transfer credit cards. In case of unexpected expenses, borrowing from friends or family or utilizing a credit card with a 0% introductory APR could be viable solutions. Furthermore, building an emergency fund is a prudent long-term strategy to ensure you have funds readily available for unexpected financial challenges.
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