Instant cash advance can be a life-saving financial option when you’re stressed about money right now. Sudden unexpected expenses spring up every other time. At times, they may find us with money in our banks, and we easily sort them out. Other times, they may catch us during that period when we received our last paycheck a good while ago and have already spent almost all of it. And since most expenses can’t wait until we receive the next payment, we may urgently need to find some financial help somewhere in the meantime.
An instant online cash advance may be a reliable option in such times and it can help lift the financial burden off our shoulders. However, it may also be the reason you might find yourself caught up in an infinite debt loop if not well approached. The Cash Advance Loans platform helps you learn all you need about instant online cash advances, the pros and cons, and the best way to work with them to ensure they serve you well without getting you into more debt.
What Instant Cash Advances Are
An instant cash advance is a small loan that lenders offer borrowers for quick expenses they may have before they get their upcoming payment. Lenders offer this type of loan with the hope that the borrowers will repay soon after they get paid.
The loan is a good way to take care of a sudden expense that caught you by surprise such as a medical expense, a vehicle problem that requires urgent attention, funeral costs when a loved one passes away, emerging school expenses for your kids, repairing your home, house moving, online bids on sites like e-bay for products that can’t wait, and repairing home equipment.
The screaming negative feature of cash advances is the high interest charged. Due to the ease and quick availability of cash advance loans, and the fact that they don’t really pay attention to the borrower’s credit score, many lenders usually compensate themselves with huge interest rates.
Types of online cash advances
Various types of online cash advance loans exist, here are some of the main types:
Personal installment loans
Personal installment loans are cash loans that you take as a lump sum and then pay back in small amounts over an agreed period with the lender. These loans are great because of their decreased interest rates compared to what other types of online loans charge.
The Annual Percentage Rate (APR) for most installment loans ranges from 10% to 40% or slightly higher depending on the lender. Also, you can get a high loan amount and be able to repay with ease as you’re not required to make a one-off repayment as with payday loans. You can get a long repayment period that can go for a few months to a few years.
Payday online loans
On-line payday loans are loans that borrowers that have a stable income opt for when they get a financial need that can’t be put off until their upcoming payment arrives. They intend to repay immediately after the payment hits their account.
Payday loans are known to have soaring interest rates where the APR can go as far as 400% to 600%. And although they may seem too expensive from that perspective, when you consider that lenders provide these loans to people who even have bad credit, you’d see how fair that would be.
Nonetheless, it’s always critical to know that most of the time, borrowers who don’t know how to manage these loans easily end up in huge debt that becomes difficult to get out of. However, those who are excellent at financial planning and paying back as agreed with the lender, can work with these loans well.
Other types of instant cash advance loans include personal lines of credit, credit card cash advances, merchant cash advances, and title loans.
How Instant Cash Advances Works
Online instant cash advances operate in among the easiest ways you could possibly imagine, as far as loan application goes. You’ll only need five steps to go from the urgent need for cash to money in the bank. These steps are:
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Analyzing your issue and knowing how much money the need requires to be completely solved. Before you even get to apply for an instant loan, it’s good practice to first understand your financial problem and be sure how much will help settle the issue once and for all. Understanding not only helps you be sure how big of a problem you have but also helps you practice prudence when it comes to applying for a loan. More often, when borrowers go online to seek out a loan, they get to realize that they qualify for more than what they actually need. The realization ends up having them borrow more than they had initially planned and then they find themselves in a big financial mess that they can’t easily overcome.
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Determining your best loan option and submitting the loan application form. After you’ve decided how much you want and understood your financial problem, you’ll then figure out which type of on-line instant cash advance will be a good match for you. Based on your income source, when you get paid, and the amount you receive every time you get paid, you may decide a payday loan or an installment loan is the best way for you. Since each has its unique features, you’ll find that one works better for you than the other. After making up your mind on that, you’ll then submit your online application form. You can find our loan application form for a cash advance on the top section of this page. Click on it, and fill out the provided areas to help our lenders know you and your financial information. And when you’re done, submit the form to get the form sent to our lenders.
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Receiving lenders’ feedback and choosing your preferred loan offer. Once our lenders receive your application, they’ll review it right away and send you an approval or rejection notice in minutes. If you’re approved, the approval notice will come with several loan offers from various lenders. Have a look at them, compare what each lender is willing to provide you, and then pick the one you feel serves your needs well going by your financial burden.
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Reading the loan terms, and then accepting the loan agreement. The lender you pick will be notified and they’ll send you a loan agreement that has the terms and conditions of the loan you want. You’ll go through all the terms and conditions and see if you’re able to work with them. The terms and conditions will include the amount to be sent to your account, the interest rate and additional fees, the repayment date, and the expected amount to be repaid on the due date. If you’re okay with them, you’ll sign the agreement and send it back to the lender.
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Processing the loan and getting the money. The loan lender will then process your loan and disburse it to the account you gave in your application. All that happens within minutes, and for some lenders, in seconds. When you get the money, you can withdraw it and spend it as you begin to make repayment plans.
The Common Requirements For Cash Advances Online
For every type of cash advance, there are eligibility requirements that lenders have for borrowers. And although each loan type has specific expectations, some of them cut across the board. The general requirements are:
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You should be at least 18 years of age
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You should have a government-provided identity card such as a passport, military ID, or driving license
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You should have an income source that’s stable and verifiable
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You should have a bank account that you use a lot
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You should have a genuine email address and active phone number
The Pros and Cons of Instant Cash Advances
Instant cash advance presents some pretty good benefits when you’re in great financial need that requires you to get fast cash for an emergency. It also comes with some serious risks and cons that are also worth considering before you being pursuing the loan.
The Pros
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Money is released pretty fast, often in a couple of hours or minutes
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The eligibility criteria are accommodating for most borrowers
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Little-to-no paperwork needed
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Money is accessible even to those who don’t have a good credit score
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No collateral is required to provide assurance to lenders
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Quick feedback, approval, and disbursement from lenders
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A flexible repayment period for installment loans
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Since it’s online, you can apply for it anytime you need it
The Cons
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Borrowers without financial awareness can easily get into bad debt
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Can easily wreck the borrower’s credit score if not approached with care
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A good way to get money in the short-term only
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Very high APR and interest rates
What to Consider Before Getting a Cash Advance
Working with a cash advance is not a walk in the park considering the many risks involved. Deep thinking, planning, and proper execution of the plan can help ensure you take the loan and repay it without getting lost in the debt spiral which is a common reality. Here are some things you should consider as you aim for a careful approach to instant cash advance:
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The urgency of your need - Before you take a cash advance, think about the need and ask yourself if it’s something you can live without and how much it’s going to affect you if you don’t take care of it. You only want to take a cash loan with same day delivery when you’re faced with a need that will seriously affect your life if you don’t deal with it. Avoid taking loans for wants and luxury.
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Not all lenders will provide cash advances instantly - You only want to borrow from lenders who process loans faster if you need the money quickly. The term "instant" is used interchangeably with fast-approval online loans, so don't expect to get money in the bank immediately. Some lenders may take longer than a few hours to get the money on your side. Our lenders will process your loan fast and if you’ve got all the requirements (which are easy to meet and straightforward) lenders want, you should be able to get your money within minutes.
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The ability to handle the interest rates - While the thought of money hitting your account in minutes sounds appealing for someone who’s in dire need of money, it’s always good to see the future too. You’ll be needed to repay the loan together with the interest rates and if you know your income won’t manage to pay back everything that lenders will be expecting you to, with relative ease, then it may not be worth getting a cash advance. It’ll only get you into a financial mess.
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Approvals are not guaranteed - Every lender has a list of demands (depending on your state of residence) for potential borrowers before they can do business with them. Lenders have to make sure you meet all of them before they can approve your request and give you a loan offer. So, something that you should ask yourself is, what happens if you don’t meet all the demands and your loan request doesn’t get approved? What other options do you have? That’s where having access to many lenders you can send your application helps as some lenders may deny you a loan and be surprised to get accepted by other lenders. Cash Payday Loans lets you reach many lenders with just one application. Once you submit the loan application, we send it to all our lenders to maximize your chances of approval.
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The time between receiving the loan and the loan’s repayment date - You want to make sure that the time the lender gives you between when they send you the money and when you have to pay it back is sufficient for you to have gotten your payment from your income source. This way you’ll be able to repay it without a struggle. If you know you won’t have gotten your regular paycheck and if you won’t have gathered enough for the loan before the due date, if the date is set before the day you’re sure to receive your income, that’s a good sign you shouldn’t take the loan.
Frequently Asked Questions (FAQS) on Instant Cash Advance
What are the most reliable substitutes for an instant cash advance?
If you want to avoid getting an instant cash advance due to their disadvantages, you may consider other options like borrowing from your close friends and relatives, credit unions, and seeking donations from charitable organizations (both religious organizations and non-profit platforms that give financial donations). Also, if you’ve got some furniture, sports, or music equipment laying around the house unused, you can consider selling it to raise the money you need.
How does an instant cash advance differ from a bank loan?
The main difference is the ease and time spent on acquiring a loan. With a bank loan, the application process is usually hectic as it consists of serious assessments that may take a while longer than an instant online cash advance. And for the most part, most applicants don’t get approved. A cash advance, on the flip side, involves several simple steps and the turnaround is quick with a higher number of approvals. However, the ease of the application drags along high-interest rates.
What other charges are added to my instant cash advance?
Every online lender has their own method of operation which may be similar to other lenders, to some extent. However, they may have a few differences here and there especially when it comes to the fees they charge. Some of the extra charges you can expect include the origination fees and late repayment charges.
Does an instant online cash advance hurt my credit score?
It depends on how you manage the cash advance when it comes to repayments. Some lenders report their transactions with the borrowers to credit bureaus like Equifax. These bureaus are the same platforms that lenders use to get your credit information which they use in deciding if you’re worth lending to. This means that when you take a loan from a lender who reports to the bureaus and you ensure that you follow the agreed terms and conditions, the lender will submit that report which, in turn, will give a good boost to your credit score. If you do otherwise, the same will reflect on your new score.
Which states in the United States prohibit residents from taking instant online cash advances?
The states you can’t access instant cash advances in are the District of Columbia, Maryland, New Hampshire, Massachusetts, West Virginia, Montana, North Carolina, Arkansas, New York, Colorado, New Jersey, Arizona, Georgia, Pennsylvania, Connecticut, Vermont, and South Dakota.
How much can I get from an online instant cash advance?
It varies from one lender to the other and what they’re willing to offer you is based on the factors they consider as they do their evaluations of your account. However, with payday loans, you can expect anywhere from $100 to $5000, and often these loans are sent the same day you fill out the application. With installment loans, you may be able to receive even more due to their flexible repayment period.
How am I expected to repay the loan?
Well, the lender will list the method of repayment that’s most suitable for them in the loan agreement. Several repayment approaches exist. Some include allowing the lender to request your bank to withdraw the due loan amount on the due date. Other lenders prefer you grant them access to determine the date and amount they’ll take from your account towards the repayment of the loan.
What are the origination fees?
These are the fees a lender charges a borrower for processing their loan request.
What is the Annual Percentage Rate (APR)?
APR is the interest rate that a borrower pays each year for the loan they’ve taken.
When should I take an instant cash advance?
It’s recommended that you take an instant cash advance when you have an urgent unavoidable financial problem and you also have a good income source that can cater for the loan without your normal financial situation getting affected. And it’s even better to consider the loan only when you’ve explored other alternatives mentioned that don’t charge interest and additional fees.
Which methods do lenders use to check my credit?
Two methods are used, soft credit checks (also called soft credit inquiries) and hard credit inquiries. Soft credit inquiries involve mild checks that often don’t influence your overall credit score. Many lenders do soft credit inquiries. Hard credit inquiries involve lenders reaching out to credit bureaus and asking for your credit information. This type may affect your ability to be approved for a cash advance and your overall credit score too. Some lenders may choose to work with hard credit inquiries with their loan products and you may not qualify if your credit is bad.
Why don’t online cash advance lenders check my credit history yet it’s a major factor in determining my ability to repay?
Because they have other ways of calculating how likely and able you are to repay your loan. They consider other factors like your current income source and how stable it is. While your credit information is critical, it’s not the only thing that determines your creditworthiness. And since lenders understand that borrowers who have bad credit have lower chances of getting approved for loans even when they’re able to repay the loan, they prefer to use other metrics to determine if a borrower qualifies to accommodate them too.
What tips should I remember so I can work with online cash advances successfully?
Some tips to keep in mind are good planning on how to spend and repay the loan, using lending networks like Cash Payday Loans to help you apply to many lenders instantaneously, reading the loan agreement carefully, and understanding it well before you sign it.
How do I pick the best lender for my cash advance loan?
It’s all about reviewing loan offers from various lenders and comparing their terms and conditions. The critical aspects to keep your eyes on include the repayment date, loan amount, ability to roll over a loan in case of delayed payments (and the charges that accompany it), interest rates, and additional fees.
Will I need a guarantor for my cash advance loan?
Most likely not. Online loans don’t require you to have a guarantor or collateral as they’re unsecured. Even with bad credit, lenders are still able to approve your loan as long as they‘re sure that you have the means to repay it. However, there may be times when lenders may reject your application when they find that your income isn’t able to service the loan you’re requesting. In such cases, a guarantor can help with the commitment of repaying the loan should it become difficult for you to do it.
Must I be employed to get an online cash advance?
Not necessarily. Lenders know that many people get money in different ways which aren’t necessarily employment. That being the case, they allow borrowers like that to still apply for their loans and get the money. Provided you have genuine money coming frequently, regardless of the source, lenders may be able to give you a loan.
Do lending networks like Cash Payday Loans charge a fee for using their services?
No. Borrowers aren’t required to pay anything to reach our lenders to request a loan. Our services are entirely free. Our lenders compensate us for every successful loan taken by you and other borrowers. And we make sure that the compensation we get is at no extra cost to you. This means you have access to many lenders and can send your application to all of them in a couple of minutes for free.
Do I really need a bank account to get an instant cash advance?
Many lenders transact through banks as they make direct deposits to your account after your loan is approved. Also, most prefer you make your repayments through the bank. Moreover, your bank statements help them see how active your bank account is and determine your cash flow and expenses.
What should I do if I’m unable to repay the loan?
Contact your lender immediately after you come to this realization. Your lender may be able to come up with a more flexible payment plan that will accommodate your situation. However, the flexible repayment option will come with an added fee.