Negosentro|What is a Cash Advance?|“What is a cash advance?” is a question many people might ponder but not give too much thought about — until they suddenly find themselves in need of emergency funds. While there are also credit card cash advances, most people in need of a true cash advance are looking for a short-term loan. Here is what you should know about this common loan option.
What Are Cash Advances Used For?
Cash advances are short term loans with a much faster approval process than traditional banking loans. These loans are typically available in amounts ranging from $300 to $1,500. They are usually sought after when the person in need won’t get their next paycheck for another week or more.
Because these loans typically have higher interest rates than a standard banking loan, they are usually used during financial emergencies when the money is needed as soon as possible. This could include covering a bill payment, wanting to avoid the fees incurred by bounced checks, or dealing with unexpected financial emergencies. Using a cash advance can help borrowers avoid late fees or negative marks on their credit score.
How Fast Can You Get the Money?
How fast you can receive the loaned funds will generally depend on when you fill out your application, but most borrowers can get cash in the same day. Technology has advanced to the point that many lenders provide online applications so borrowers can submit their application at any time.
While the exact timeframe for receiving money depends on the lender, most lenders can provide same-day funds for applications completed before a “cutoff time.” Applications completed after that point will receive money within 24 hours of submission — including those that are submitted after hours.
What is Needed to Qualify For a Cash Advance?
You don’t need to go through a rigorous credit check to qualify for a cash advance. All you need to provide is a valid checking account that has been open for three months or longer, as well as proof of address and full-time employment for the last six months. This helps prove that you are in a relatively stable financial position, and that you will be able to pay off your cash advance in the future.
Making the Most of a Cash Advance
If you find yourself in a financial tight spot, a cash advance could be the right solution to help you make payments on time or take care of an unexpected expense. By using this loan option responsibly, you can avoid issues that would hurt your credit score and overall financial standing.