Do you need to borrow money to take care of an emergency? These loans are known as cash advance loans and they can be an interesting option if you cannot wait more than a day to get an answer and need the money right away. Here are a few things you should know about these loans.
Cash advance loans are usually issued to clients who will then use their next paycheck or a portion of their next paycheck to pay the loan back. Lenders charge higher interest rates and fees since the loan is meant to be paid back within a few weeks or a month or two. This is why the fees can seem high when compared to what banks offer, but you should not end up spending a lot on fees as long as you can pay the loan back with your next paycheck.
This also means that you will probably not be able to borrow more than what your next paycheck is going to be. If you need more money, you should consider borrowing a portion of what you need from friends and relatives or looking for a lender who will offer a larger loan and give you more time to pay it back.
Lenders will usually require you to prove that you are going to receive a paycheck at the end of the month. Showing old pay stubs will probably be necessary but some lenders might require additional information such as a letter from your employer that states you are still employed and will receive a paycheck soon.
It is very important to understand the fee structure used by the lender you select. Ask them about their fee structure and get something in writing. You should also review the loan application very carefully to look for any information about additional fees that the lender did not mention when you asked about the fee structure.
Use a loan payment calculator to get an idea of how much your payments will be and make sure you will be able to cover these payments while taking care of your other important expenses. You should also calculate how quickly late fees will add up to get an idea of the cost of missing a payment. A cash loan can be a good option if you need money quickly. However, it is important to look for a trustworthy lender and to go over their fee structure.