When we think of a cash advance, most of us think it to be an advance taken out on the basis of your credit card or some via other form of credit instrument. There are severe credit card service providers that offer cash advances to its customers via an ATM where the credit card can be used to get immediate cash advance.
One of the problems associated with credit card cash advances is that the costs of such a borrowing can rapidly add up to a big amount. Also, customers may not even know what all the associated costs of such a cash advance are. Additionally, there may be other charges such as transaction fee levied by the company running the ATM; a fee for using the credit card to take out a cash advance; and penalty charges which may become applicable in case you are unable to repay the cash advance on the credit card bill due date the following month. It may also be noted that the interest charges on cash advances taken out on credit card often have an interest rate that is higher as compared to the interest rate levied on credit card purchases.
All the above shortcomings associated with a credit card advance can be avoided by opting for a payday cash advance.
What is a payday cash advance?
A payday cash advance is a short-term loan offered by lenders that gets transferred to your bank account after the loan is approved by the lender. The amount that you can borrow using this cash advance facility is often comparatively small and hence it can be repaid fully in 1 or 2 installments. These types of cash advances are similar to what are known as payday loans with the major difference being that the former (cash advances) does not always need the borrower to repay the full loan on the payday.
There are many online lenders that offer cash advances. The complete procedure, starting from application to disbursal of funds, is done over the web. Hence, borrowers need not physically visit the office of the lender to fill out tedious forms to apply for the loan. Borrowers just need to visit the website of the lender, fill out a fairly simple online application form and offer necessary documentation related to personal and financial information. Later, an email about the status of the loan is sent by the lender to you. If the loan is approved, then the money gets directly transferred to your bank account.
Qualifications for getting “cash advance”
Any borrower aged 18 years or older who fulfills certain income and job requirements is eligible for applying for a cash advance. It may be noted that the lenders usually do not check the credit history or credit score of the borrower. Listed below are some of the details that borrowers will need to furnish when filling out the online application form:
- The current residential address and related contact information
- A working email address and valid phone/mobile number
- A valid bank account with electronic transfer facility that can be used to transfer the loan