Cash Advance Loans
If you need to find a short-term funding solution before you receive your next pay cheque, then a cash advance loan could provide you with the answer. Cash advance loans are easy to qualify for, and repayment is simple. Unlike with secured loans or the repayment loans offered by the big banks, you don’t need to have a great credit history in order to get a cash advance loan. Nor do you need to put up your house or any other asset as collateral, or worry about any long-term commitment to a repayment plan.
When you need money in a hurry
There are many reasons you might need emergency cash, perhaps because of an unexpected repair bill for the car or the home, in order to fund a medical procedure, pay for a flight, etc. In these types of situations, when you require cash in a hurry, a cash advance loan can provide you with the funds you need instantaneously. Most cash advance loans are approved within minutes online, with the funds then immediately available to you via wire transfer. In order to be eligible for a cash advance – also known as a payday loan, you need to be over 18, employed and reside full-time in Australia. You will also probably need to be earning over $1500 per month to qualify for a cash advance loan. If you fulfil these criteria, and can prove you can pay back the loan in full in a short period of time, then this type of loan might be ideal for you.
Payday loans can be a good quick fix alternative to paying for items by credit card or enduring high overdraft fees. By being able to apply online you are also saved the hassle and potential embarrassment of being turned down by the bank. When you’ve paid off the loan this information also gets forwarded to the credit reference bureaux, and can help you rebuild your credit rating.
When selecting a lender, check out their website and make sure they are a reputable company. Look for transparency on fees and charges, and whether it’s easy to contact them. You can also search for online reviews to look at past customer satisfaction.
A word of warning
Used with care, cash advance loans are not inherently bad and they can provide you with an effective means of getting out of a tight spot. However there are some situations when payday loans should not be considered.
Cash advance loans are probably not for you if you have accumulated debt, nor are they intended to be used as a frequent source of borrowing. Interest rates on cash advance loans are very high, in some cases as high as 500% annual interest, so if there’s any hesitation of being able to pay the full amount back by the agreed date, they should not be entered into. Missed payments also incur penalty charges on top of the interest, which accrue on a rolling basis.
Cash advance loans can help to bridge a short-term gap in finances, but they cannot fix any long term cash flow problems. If your finances are in trouble and you are routinely finding it hard to find the money to pay for everyday expenses, they can make a bad situation worse.