When urgent situations arise and money is tight, a payday cash advance loan may provide you with enough funds until your next payday. There are many advantages and disadvantages to applying for quick personal loans. If used responsibly, payday loans can be a lifesaver. As long as an applicant is in a financial position to repay the loan, high fees and additional interest are avoided.
What are Payday and Cash Advance Loans?
Cash advance loans are very different from loans obtained from credit unions, banks, etc. Cash advance companies offer personal loans during a financial crunch. However, the process is much quicker than other lending institutions, the loan term shorter, and the loan requirements are simpler.
Because cash advance companies offer loans to a variety of people with all types of credit, they must establish certain loan requirements. Nonetheless, their primary objective is to offer financial assistance, thus credit scores are never considered.
Payday Loan Company Loan Amounts
Each cash advance company has a different maximum payout. Most companies offer short term loans up to $500. On the other hand, several online cash advance companies approved loans with higher amounts. Be aware that the more money borrowed, the higher the loan fees. Loan companies charge a flat fee per $100 borrowed.
For the most part, you may get a loan up to $1500 with no credit check or collateral. Loan companies that offer funds up to $3000 may request a vehicle title or other form of collateral.
General Requirements for Cash Advance Approval
Payday loan companies do not care about credit scores, income, or occupation. They simply want applicants who are capable of repaying the loan. Thus, those applying for a cash advance loan must have verifiable employment. Typically, employer needs to be the same for 90 days.
All loan companies establish a minimum monthly salary, which ranges from $1000 to $1500. Because most cash advance companies deposit and withdraw funds, an active checking or savings account is necessary to receive funds.
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The entire loan process is completed electronically. Therefore, the loan company will automatically deduct the loan, plus fees, on the due date. To avoid paying additional fees, the funds should be available for withdrawal within two weeks.