Finance Blog

Everything You Should Know About Cash Advance Loans

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At the time of a cash crunch, you wish for a ready source of cash. The cash advance loans provide you with such a source. Like any other loan, there are things that you should know and things you should do before availing a cash loan.

Researching the loan

When taking a cash loan you must make time to research about the loan. You may be desperate, but if you don’t research about the loan you may find yourself paying a hefty sum.

You should not go for a cash loan if

  • You are not sure about repayment
  • You already have a loan or two
  • You want to use it to settle other loans
  • You want the cash for leisurely activities

Now comes the question what you need to know about cash loans? The answer is

  • Features and terms of loan
  • Charges and fees involved
  • Mode of payments
  • Charges involved in extending the term
  • The lending Companies background and legitimacy

Payday loans

You need to understand that these are only short-term loans, to help you out till your next payday. You can go for them if you are absolutely in need of cash and you are sure of paying it back on time. You are allowed to choose the repayment period by certain lenders.

The fee and charges

You need to understand the charges involved and the fee or interest that will be charged by the Company. You should also compare them with other Companies so as to get a clearer picture. Ask for these details in writing, from the Company you are considering for a loan, prior to taking the loan. You are entitled to this information by law.

Repayment

The loan is normally in the range of $50 to $500. At the time of repayment, you need to pay the loan amount as well as the charges involved. You may be required to setup a recurring payment or a continuous payment authority, it facilitates the lender to take the repayment amount from your account on the repayment date.

The rollover

The rollover is extending the loan payment term. It can be availed if you are not able to pay at the time of closure date. If you are thinking of using this option then carefully understand the charges involved. There is additional charges and interest involved in a rollover. You may get additional time to pay but you will have to pay much more.

The basic thing is that a cash loan is a loan and you have to pay it back, so if you are willing to behave responsibly in your financial dealings than it is a lucrative option to handle a sudden cash deficit.