Many individuals have heard the term “cash advance” but are unsure exactly what this term means. A cash advance company is an organization that not only helps individuals secure short-term loans, but they also provide services like budgeting and saving tips. In addition to these services, the cash advance company will work with a person to establish an agreement to pay back the loan in a few months time. The terms and conditions between the two parties are set forth in an agreement which is then signed by both parties.
When a person needs money quickly they will turn to a cash advance company. These companies have been known to loan individuals thousands of dollars since they are so convenient. There are two types of cash advance companies; those who work with a bank and those who work independently. There are advantages and disadvantages associated with each type of company and it is important to carefully consider these before making a final decision. Here are some things to know about cash advance companies that work with banks:
- A cash advance company is often affiliated with a bank. Because these lenders are affiliates of banks, they are allowed to charge very high interest rates. Because there is a tie up between the bank and the company, the individual who is taking the loan must pay that interest on top of the loan. This can prove to be extremely costly. This is why prior to signing any type of agreement, it is important to compare the different rates that are being offered to ensure that you are getting the best deal possible.
- Most of these advance companies do not require a credit check. This is good because it means that anyone can apply and get an advance regardless of their credit history. The only requirement is that you be 18 years of age or older and have a legitimate checking account. This is important because if you are denied for a loan you can end up losing your job.
- Cash advance companies commonly offer emergency loans. These services are extended in cases where you are facing immediate expenses such as car repairs or a broken fridge. They also help with other types of unexpected expenses such as utility bills, rent or medical bills. These loans must be paid back within 30 days of receipt. If they are not paid, you will receive further notices from the company until they are paid.
- A cash advance company works with certain networks. In most areas you will need to be a member of one of these networks in order to take advantage of the services that they offer. The advance company will connect you with a lender who is willing to approve the loan based on your credit and income level.
- There are usually fees associated with using a cash advance company. These are typically a percentage of the amount of the loan and are non-refundable. You will also need to pay for the transaction fee when you submit an application for the advance as well as an interest fee. You may also need to pay a setup fee and an annual or monthly fee.
As you can see, there are many different things that you need to consider when you are considering what is a cash advance company. Making sure that you have all of the information that you need before applying will allow you to be more successful. You will be able to avoid any future problems and find the right service for your needs.