A cash advance loan or payday loan is a short-term loan that is becoming popular with people who have bad credit. Cash advance lenders are confident in offering this type of loan to people in credit default because the risk is low since the loan will be repaid on the borrower’s next payday schedule.
If you are one of the people with bad credit, this type of loan would be your best option. However, like any other loan available in the market, a cash advance loan also has requirements that you must meet, such as:
Source of stable income
Having a stable source of income is one of the reasons lenders see lower risk in offering cash advance loans to borrowers with bad credit. You must provide proof of income to the lender before they can decide whether or not to approve your application.
Having a stable source of income is one of the reasons lenders see lower risk in offering cash advance loans to borrowers with bad credit.
A cash advance loan is like taking your next paycheck in advance, but with extra interest. There are times when we need cash fast, but your payday schedule is still a long way off. The concept of a cash advance loan is to provide instant cash to employees who need money but cannot obtain installment loans due to special circumstances.
This is why a cash advance loan is also called a payday loan because your next payday will be payment of the full loan amount you owe plus interest. If you don’t have a stable income, payday lenders will likely refuse your application.
If you are one of 45 million Americans without a scoreyou should strongly consider taking out a cash advance loan if you have a steady and steady income that can qualify you for this loan option.
Current account active
Another thing you must have is an active checking account. The lender will ask for a check dated from your next payday schedule as an essential requirement for a cash advance loan. The check will serve as security from the lender.
Once you receive your paycheck on the scheduled payday date, you can pay the lender in cash and take your issued check. You can also choose to deposit your payment into your checking account so that the lender can collect it.
After providing the above mentioned requirements, the next thing the lender will ask you is proof of identity. This requirement will prove that you are who you claim to be. Proof of identity is an essential requirement not only for loan applications, but also for other things.
You need to know what proof of identity the payday lender will accept, as some lenders are particular about what they consider valid proof of identity. The ID you provide to the lender must show your full name, date of birth and address.
You must be at least 18 years old.
The cash advance loan or any other loan available is reserved for persons aged 18 and over. 18 is the legal age set by most US states, which means that a person must be at least 18 years old to carry out legal actions, including applying for a loan.
Eighteen is also the youngest age a person with a stable income can be. Although some young teenagers in the United States are already working, this cannot be considered a stable job. It could be a part-time job with a small salary.
Something else you need to know about payday loans
Besides the requirements to qualify for a cash advance loan, there are other things you need to know about this loan option. A cash advance loan does not directly impact your credit score, but it still can indirectly.
Once you have acquired a cash advance loan, you will have to pay a high interest rate, affecting your other financial obligations such as existing debts, bills and even your daily necessities.
If you think you can afford to pay the interest rate on the cash advance loan without it affecting your other obligations, you shouldn’t worry about it. You should also know about cash advance loans that might even entice you to get one as it is a quick and easy solution to your financial problems.
There is no application or subscription involved in a cash advance loan. It also gives the money as soon as you meet all the requirements and qualify for the loan. It is one of the fastest short term loans available in the market today that can help a lot of people who need extra funds.
There are so many good things about cash advance loans, but you also need to understand that there is a downside, just like any other loan. Cash advances or payday lenders do not give their borrowers a grace period. The interest rate on your cash advance loan starts accumulating from day one.
However, you will be informed of this by the lender as this will be included in their policy. If that’s okay with you, go ahead and ask for a cash advance from the payday lender near you.
In a word
Having a low credit score doesn’t mean you can’t do anything to get extra cash when you need it. A cash advance loan is made available to the public so that people who have a bad credit history can always get help, especially in an emergency.