Archive for the ‘Cash Advances’ Category

Cash Advances

In a economic tumult where people in general are struggling to make it from payday to payday, sometimes due to unforeseen or planned emergencies some are taking their financial needs to cash advance merchants.

While cash advance merchants have a place in society, it is relatively the same as a shark has its place in the ocean. States across America each having their own regulatory financial amendments have laws that effect the actions of lenders, ranging from banks to cash advance merchants.  While banks are tightening their purse strings and raising the expectations of borrowers responsibility has been raised, making it seem as though consumers in desperate need have no other alternative but to tap on the services offered by cash advance loans.

Let us examine what a cash advance loan really is, and then you can determine that validity of your use with these financial services:

• NO credit required
• Bad credit ok
• Terms of paycheck-to-paycheck
• Money in a little as an 1hr
• Interest rates as high as 391.07% per year-
• Interest rates as low as 180%
• Write a check for a loan and  get money today
• Write a check for a loan and if you are unable to buy it back
• NO rollovers…..really

No Credit Required

Most of the cash advance merchants will take an application; you provide 2 forms of state or federal id, a valid personal check made out to the merchant, dated same day or in advance (Psst! Don’t believe a word of it once you write it, it is valid). Oh yes don’t forget your most recent check stub to prove income. Hint: you cannot borrow- or get an advance greater than your average payroll check.

Disadvantages of Cash Advances

Are those payments is regularly due every 2 weeks, with of course the interest applied; you know your agreed amount that wrote on the check that you gave when you applied for your “LOAN”. If you don’t have the cash to buy the check out on time, you will lose your borrowing privileges, and the check that you  left with your application will be deposited. Just pray that it doesn’t bounce as then you will incur additional fees, and maybe a visit from the State Attorneys office for check fraud.

Advantages of Cash Advances

If you are left with no means of putting together funds needed for a real emergency, such as electric bill, or family emergency that requires travel and funds are not readily available. In most cases cash advance merchants do not report to the credit bureaus however if you create a bad debt with them, it will show up as bad credit risk on your credit report.

Overall, you must consider that cost. You should always weigh the desire for cash now, or the need for cash is now. If you are short on electric bill by say $100 usually the minimum borrowed, to avoid reconnection fees or food loss from lack of refrigeration, then the charges for borrowing may very well outweigh the cost of reconnection fees.

You Need a Plan To Repay Your Loan

You need to plan how you are going to repay your loan before you borrow. How many times will you have to pay the loan fees, based upon the renewal of the loan, which may occur, when don’t have enough cash for this pay period. You may pay off the loan with fees today, but next week when you run short because you paid your loan with money that you were supposed to use else where, then you may find that you are now in a rat race with trying to get out of debt with the cash advance lender.