You need cash urgently for an expensive medical emergency, unexpected financial obligation, auto repairs that cannot be put off any longer, or an investment opportunity that looks too good to be missed. Sounds familiar? When you need money right there and now, applying for a bank loan takes too long. Besides, you may not get approval if your credit history is less than stellar. Borrowing from friends and family may be an oh-so-embarrassing experience that you don’t want to consider ever again. Perhaps an online cash advance may be able to solve your burning need, even if you have a spotty credit history. We’ll discuss three common types of online cash advances here. Let’s see how can you use them to the best of your advantage.
This spells ‘fast cash’. Fill out a short form online and the loan amount will show up in your bank account as soon as the next business day. No credit checks, no delays, no questions asked – just the cash you want when you need it most.
Payday loans are usually small short-term of less than $1000 which you’ve to repay upon receiving your next paycheck.
Payday installment loans
These are payday loans which you can repay in small, manageable amounts over the period of the loan tenure. Unlike a typical payday loan which has a designated loan amount ceiling based on your next expected salary, payday installment loans let you borrow more since the repayments will be made in bite-sized amounts over a period of time.
One advantage of this type of online cash advance is that you can borrow an adequate amount to tide you over the emergency financial obligation in the most effective way. Coupled with staggered repayments made over the period of the loan tenure, you can breathe a little easier since you’re not obliged to cough up the full loan amount in one huge lump sum.
Line of credit loans
Anything that can go wrong will go wrong. Life is such sometimes. When one cash advance online isn’t enough to solve the issue at hand, it may take several loans to do so. In a situation like this, a line of credit loans frees you from the hassle of having to spend time applying for multiple loans online. One line of credit loan lets you continue borrowing the much-needed money until you hit your credit limit.
One wonderful feature many borrowers love is the no designated payback date for a line of credit loan. You’ll receive a monthly bill statement detailing the amount you’re supposed to repay based on the outstanding amount. If you’ve been keeping up with your repayments, you can be receiving a shrinking bill every month.
* Not available in all states
– Sky-high interest rates
Behind the ‘quick cash’ veneer is massive interest rates which can be several times higher than a bank loan. Online payday loans should only come in as a last resort for emergency funds and you should have the confidence of meeting the monthly repayments on time. Otherwise, it’ll just be an abyss of spiraling interest rates which suck you further into debt. Used sensibly a cash advance makes sense. Traditional lenders front load their loans with arrangement fees and these can exceed the interest on a promptly repaid payday loan. The key is understanding that payday loans should always be repaid within a few weeks.
– Fraudulent online lenders
You don’t want your personal information to fall into the wrong hands. Make it a habit of looking out for the “https” prefix in the online lender website you’re interested in. The prefix means that the site has been built for safe and secure online transactions. Moreover, having a professional customer service team manned by real human consultants whom you can always get in touch with is a reassuring sign that the online lender is legitimate and genuine.
– Up-front payment
Alarm bells should go off should a website claims to offer cash advances online and then demand you pay some ‘fees’ via the Western Union or other cash transfer channels first before you receive your loan amount. Don’t settle for the first online lender you come across just because you’re in dire need of cash. Honest, professional online lenders are a dime a dozen out there. Always look for one who makes you feel informed and at ease throughout the process.
My Name is Jay has and I have a passion for financial writing. I am the chief writer on this blog. I do my best to verify all the information but if there is anything amiss please let me know and I will do my best to correct it.