The Realities of Cash Advance Loans Explained
Financial realities can catch up with any person. Whether a car or medical emergency means that you need to spend more money than you have or back bills have left you overextended, anyone can find themselves needing extra money to get through the money. One of the best options for getting a “bridge” to make it through short-term financial stress is a cash advance loan.
A cash advance loan can provide customers with immediate money to help them get through a financial crisis. These are essentially short-term loans — usually until the person receiving the loan receives their next paycheck. The loan provider receives a fee for providing the loan and can charge interest if the loan is not repaid by the due date.
There are several misconceptions about cash advance loans that many people have. Here are a few truths about the industry that many people don’t know:
Cash Advance Loan Companies Are Invested In Their Communities
Many cash advance companies and their leaders are heavily invested in the communities where they operate. One example is Ian MacKechnie of Amscot Financial, which has established programs in Florida to increase child safety such as providing ID cards for children and giving free bicycle helmets with fitting to young riders.
Cash advance Companies Are Highly Regulated
Cash advance companies fall under the federal Truth in Lending Act, which requires any company providing loans to completely disclose the cost of the loan. This disclosure includes interest rates, service fees and the terms of the loan. In addition, the industry is also regulated by laws in many states which control how loans are made and give consumers confidence that they are being treated fairly throughout the process.
You Can Pay Off Loans With No Penalties
One of the many advantages of a cash advance is that they provide a high degree of flexibility for people who receive the loan. If you pay off the loan by your next paycheck, you only need to cover the service fee taken by the provider at the time of receiving the loan. You can also choose to pay additional fees and wait until a future paycheck to pay off your loan.
It’s Easy to Quality for a Cash Advance Loan
Cash advance loans can be a way out for people who otherwise would not have options for receiving money to cover emergency expenses. The primary qualification for receiving a cash advance is having a steady job and the income to pay back the loan after receiving your next paycheck. Even people with otherwise poor credit scores can qualify for many cash advance loans if they can prove they have steady employment.
Cash Advance Loans Are Fast
When an emergency happens, you may not be able to wait days — or even weeks — in order to get a loan approved and money in your bank account. A cash advance loan can be approved within minutes of completing an application and many lenders can have money transferred into an account or a check ready within hours of approval.