The number of companies that offer quick cash advance loans online these days is astounding. When you run an Internet search on the phrase payday loan or cash advance tens of millions of results will be generated. This is a testament to the popularity of these credit facilities. There has been a lot of discussions in the public domain about the usefulness of these loans with some people claiming that lenders use these credit facilities to exploit consumers who are experiencing financial difficulty. Read on to find out if there is any truth to these claims.
In order to have an unbiased opinion it is important that you understand exactly what they are as well as how they are issued. Well cash advance loans are simply short term loans that are provided to consumers who expect to receive some funds towards the end of the month. Once they get the expected funds borrowers are expected to repay the loan plus any service fee. The credit facility is unsecured and has a term of less than a month. Loan applications are only approved if the applicants have a source of income and are over the age of 18 years. Furthermore applicants have to be citizens or persons residing in the country legally. Most of these loans are offered online these days. Click here to read more information about finances and more.
The APRs charged by payday lenders are normally much higher than what banking institutions and other mainstream lenders normally charge. However cash advance lenders do not usually take the same duration of time to process loan applications as mainstream lenders do. They also lend to consumers who have low credit scores. Loan applicants do not need to provide any supporting documents or fax anything to the lender because almost everything can be verified online nowadays. Banks normally require borrowers to provide copies of payslips ID passport photos driving license and any other piece of documentation that they can think of. The loan application process for payday loans is very simple and completely online. One of the many things that attract consumers to these loans is the fact that lenders do not dictate or ask about how the loan is going to be used. They do not also ask for collateral. These lenders offer the kind of convenience that mainstream lenders cannot provide. These are just some of the many reasons why quick cash advance loans are useful and helpful to consumers.
The amount of money offered by payday lenders is normally very small. In fact no lender can award a loan amount that comes close to the borrower’s monthly income. This is because lenders understand that apart from repaying the loan and paying the service fee the borrower must also take care of other personal financial obligations. This helps to reduce default rates and is part of the responsible lending policy that most payday lenders subscribe to. When the loan is due the checking account of the borrower is debited automatically to recover the outstanding balance of the loan. This makes loan repayment easier. It also helps to prevent borrowers from defaulting.
You can apply for a quick cash advance loan from a Better Business Bureau accredited online lender to fix your car pay school fees settle overdue utility bills take your family for a weekend outing or anything that you may need some money for.