A cash advance is easy to get when you meet all the qualifications. You can apply for cash advances from a bank lender, online loan lender or employer and pay it back at your neck paycheck. The cash is credited to your bank account and you can use it however you please. This type of loan is perfect when you have financial emergencies and do not have any other loan option. Cash advances may be easy to obtain but can be a lot of work when you are paying it back.
What are the qualifications?
To qualify for a cash advance, you will need to be 18 years of age or more, depending on the lender’s terms, a permanent job and a working bank account. For some lenders, the age limit can be a little higher. You will need to prove to the lender that you have a permanent job and a consistent salary. They want to make sure you can make all the payment on time when they approve your loan. The bank account acts as a form of money transfer and communication between you and the lender. For instance, when they approve your loan, they deposit the amount directly into your account.
Receiving the money
You will only receive a cash advance according to the amount of money you make. Some lenders have high salary limits while others have an average limit. You can get up to 80% of your income in cash advance.
When the lender approves your application and deposits the money in your account, you are free to withdraw it and use it as you please. You can access the money through wiring it to your phone, ATM withdrawal and direct withdrawal from your account. There are no limits to how you can use the money you receive from a cash advance.
The interest rates
Compared to conventional loans and other online loans, a cash advance comes with a hefty interest rate. The lender may charge you a huge percentage of the advance depending on their terms and conditions. The interest rate is usually imposed on the cash before you gain any access to the money. When the money hits your bank account, the interest rate is usually imposed. You should check out the terms and conditions of different lenders before deciding on the application; different lenders have different interest rates.
The grace period
Cash advance lenders do not impose a grace period on your loan. This means you can take your time to pay back the finances plus interest you owe the lender. The downside is the interest rates will accumulate as long as you have no completed the payments on the loan. Paying the loan early will save you from the much interest rate that will accumulate. Understanding the difference between cash advance and payday loans are vital.
The final word
A cash advance will affect your credit report negatively or positively depending on the payments you make. For more points on your credit, ensure you clear all the payments on time to avoid an increase in the interest rates.