Cash advance, also known as payday cash advance loans are small amount short-term loan that the borrower can use while facing unpredictable financial emergency. These loans are not intended to be utilized for bigger purchases like a home or a car. A borrower can use such loans to stretch his buying power and help cope with small and unplanned expenses like paying medical bills or repairing car.
As you know, fast cash loans, commonly known as payday loans are collateral-based short-term loans. The checking account of the borrower is used as the collateral for the loan. Qualifying criteria for the fast cash loans have very little to do with the borrower’s creditability. Usually the lenders of such loans require a personal identity proof, an active bank checking account and a regular source of income with a monthly income of 1000 USD in order to sanction the loan. Loan amount differs as per respective state’s regulations. However, it typically ranges between $100 and $1000.
The tenure of first cash advance is two weeks or the time between when you get the loan and your next salary day. In order to get the loan, you need to sign a document to authorize the payday lender to withdraw money along with interests from your bank account electronically on the due date. You can also post-date a check for the entire amount along with services fees and interest charges. If you fail to pay the loan back, you can extend the due date to next payday. Every state has its own set of laws regarding the extension of the due date and the lender must obey the law.
It is very easy to apply for and receive first cash advance loans. But you must pay the loan back in time to avoid being trapped into the loan cycle. Cash advance online comes with a high interest rate so unless you repay the loan in time, you may have to pay hundreds, if not thousands, in interests.
However, you can also contact your payday lender and negotiate to reduce the interest. You can also request to extend the loan terms so that you can afford to repay the amount you own. Firmly tell them that you’re not in a financial condition to pay back the loan in full right now. Lenders always prefer clear conversation and thus it may influence them to work with you and extend the repayment period.