Cash Advance Loans – The Facts You Need To Know

Cash Advance Loans – The Facts You Need To Know

Cash advance loans is just another term for payday loans. These loans or cash advance services are frequently availed by people. There are certain facts about this kind of service though that you ought to be aware of.

Cash advance loans today enjoy a lot of popularity. They are considered as a convenient way of managing unexpected expenditure during the (mid-month) spells of money-scarcity. Most of you must be aware that these loans are actually payday loans. Their amount is essentially limited ($200 to $1000) – sufficient to take care of only those relatively small-time financial emergencies that emerge between paydays. Millions of people use their cash advance loan to tide over their crises. In spite of such widespread usage, most of the people continue to be unaware of certain basic facts relevant to these services.

Cash Advance Loans – Describing The Facts:

Everybody knows that online cash advance service entail high interest rates. The reason being that they are bad credit cash advance services i.e. no credit checks are required to qualify for them. Few, however, are aware that it’s possible to get cash loans at much lower interest rates. Cheap cash loans are offered by a good number of companies. You just need to put in sufficient effort to search for such companies. Especially, military personnel can avail cash advance service at surprisingly economical rates.

Flipping or rolling over of cash advance loan is generally not advisable. There is a flip side to this too. In some of the states of the U.S., it is a legal obligation for payday lenders to provide extended payment plans. If you live in one of these states, and genuinely require an extension of repayment period, you may avail this facility.

Usually there is no limit on the number of cash advance loans a person can borrow at one time. But this is not so in all the states of the U.S. Some of the states impose restrictions on the number of loans that a borrower can take at one time. Not only this, they also limit the number of loans that can be taken in a given year.

About Interest Rates:

Most of the people think that loans are an expensive affair. In direct sense, this is rightly so as APR for payday loans range from 300% to 700%. However, these interest rates seem low when compared to the percentage of penalty amounts that one might have to pay by not availing cash or payday loans. For instance, if a person fails to pay a $200 utility bill in time, he would end up paying as much as $100 as late payment fee. This translates into approx. 1300% APR (annual percentage rate). Similarly, a bounced check for an amount of $100 may cost you about $45, which also encompasses APR in excess of 1000%. So when seen in context of genuine utility, cash advance loans are not that expensive.

Cash advance services provide cash advance loans that help people tide over their cash crunch mid month. Do a bit of research on the cash advance service that you wish to avail. If you are taking bad credit cash advance services, remember these loans have very high interest, so do not roll over, just take the amount you need.

Source:http://www.americanchronicle.com/articles/viewArticle.asp?articleID=45936