Why Choose Cash Advances Over Other Credit Schemes

Cash advance, also known as payday loan, is a short-term credit offered by independent lending companies. These companies lend small emergency funds, usually ranging from $50 to $500. Because it is an interim lending scheme, the duration of payment lasts for two weeks only. This is in contrast with bank loans and credit cards which are paid over months and years. Similar to other credit methods, it charges an interest rate per transaction. Payday lenders usually allot a 15% to 30% interest rate for a single loan.

In the United States, the government approved the establishment of payday lending companies in 1996. By virtue of Senate Bill 1959, they allow businessmen to venture into a short-term lending business which can help Americans cope with urgent financial needs like health emergencies and monthly bills. During that time, banks and financial institutions are closing and big banking corporations do not approve of giving out a minimum of $100 loan. Hence, payday lending comes into the fore of the financial business.

The benefits and conveniences of borrowing from payday lenders has made cash advance one of the most favored lending schemes in the country. Despite high interest rates, most people prefer going to lending outlets than banks and credit agencies. Its fast application and approval process allows clients to get their requested money immediately. Within a span of 24 hours, one can withdraw the loan from the ATM or claim it in their bank.

Unlike banks and credit corporations, payday lending companies only ask for three basic requirements from borrowers. These are regular employment with stable income flow, working bank account, and contact details. As long as you are of legal age, with the requisites on hand, you can apply for cash advances payday loans.

The development of the online application system has made it easier for borrowers to ask for cash advances payday loans. Lending companies have created websites where clients can apply for payday loans at the comfort of their homes.

Moreover, payday creditors do not check a debtor’s credit history. This makes them an ideal credit option for people who have unpaid debts from other financial institutions. They assure payment of cash advances payday loans by giving lenders a postdated check or authorization to withdraw from their bank account on the due date of their loan.