Cash advances are no longer the same as we know it today.
These are not exclusively from companies we work for. There are now places offering
this type of financial service to those in dire need for cash. But before you start jumping for joy, there are important questions you need to
ask before resorting to this type of monetary resource.
Here are the top 10 of those questions:
What are cash
advances?
Cash advances are similar to payday loans you can borrow
before payday and will need to be paid during the next pay.
What loan purposes are accepted?
While there are varied types of loans such as personal, car,
home, or business, cash advance and similar types of loans can be used for any
other purpose you intend them for.
Who are eligible to
borrow?
Anyone who is over 18 years old, with a bank account, and
employed or with a regular source of income can borrow. Eligibility may vary depending on where
you loan the money from.
What are requirements?
Requirements also vary but in most cases, you just need to
fill out an application form and submit the usual documents such as IDs and
other materials needed by the lender.
Why are the interests
so high?
The convenience of being able to borrow money without the
need to submit numerous documents and undergo rigid credit checking compensates
the higher interest rates. This is to ensure that loan providers are able to cover
possible risks from loaning money even to borrowers with poor credit standing.
How to apply?
Application can be processed online, over the phone, or in
person. Again, this will vary depending on the company where you are to loan
money from.
How long will it take
before I get my money?
Most companies will approve the application in minutes but
the money will be credited to your bank account after a few hours. You can
expect the money to be deposited to your bank account within the day when you
apply during business hours and working days.
How will I pay?
It will be electronically withdrawn from the bank account used
to deposit the loaned amount.
How long is the
repayment period?
It varies depending on the loan provider. In most cases, the
repayment period is between 15 days to 3 months or even longer.
What happens if I don’t
pay?
The interest will rollover to the next month until it
accumulates into a substantial amount which may merit a possible lawsuit.
One last note, before you apply for cash advances or any
other type of personal loan, make sure to read the fine print (terms and
conditions) before signing any contract.
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