Who takes cash advances?
For millions of Americans – particularly
those who live paycheck to paycheck – these
tiny, short-term loans are a way of life.
Just before Christmas last year, more than 10
million people took out a cash advance
loan, according to industry statistics.
What is a cash advance
loan?
A cash advance is a short-term loan for
a small amount of money (usually up to $500)
often perceived as a new method of acquiring
consumer debt. Cash advance loans go by a
variety of other names, including payday loans,
check advance loans, post-dated check loans or
deferred deposit check loans. Usually, a
borrower writes a personal check payable to the
lender for the amount he or she wishes to borrow
plus a fee. The company gives the borrower
the amount of the check minus the fee. Fees
charged for cash advances are usually a
percentage of the face value of the check or a
fee charged per amount borrowed.
Where can I find a quote for cash
advances?
LoanShopUSA.com is the
leading online marketplace for cash advances.
With more than 1000 participating lenders in our
network, we can help you locate one who can help
meet your needs. Click here to get your Quote for Cash
Advances. This is a free service.
When should I consider a cash advance
loan?
People who take cash advances
often say, “I just need enough cash to tide
me over until payday.” They are often
lower-middle-class “working poor” who
see few options other than such loans. It's
not illogical. These cash advance loans are
safer than dealing with loan sharks and cash
advance loans may end up being cheaper than
actual banks.
Why are the interest rates so
high?
Due to processing costs on
such small loan amounts, conventional interest
rates would not be profitable. For example,
a $100 one-week loan, at a 20% APR (compounded
weekly) would only generate 38 cents of interest,
which would fail to match loan processing
fees. Also, the interest on cash advance
loans is less than the $60 to $70 penalty for
bouncing a check or the $30 in late fees –
not including interest – that credit card
companies extract for missing a payment.
How do I repay a cash
advance?
The loan is given in cash
and paid back via electronic withdrawal from the
debtor's checking account. If you extend or
“roll-over” the loan – say for
another two weeks – you will pay fees for
each extension. If you don't pay, only
thing that gets broken is your credit rating.
Ready for
your Cash Advance? Get
Your online Cash
Advance Quote
