Fiscal Fundamental: Cash Advance Loan is a Good Deal to Settle With |
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Cash Advance is a new concept spreading quickly like fire in the US market today. The easy availability of cash under this scheme has contributed to its popularity in the United States today. You can walk into any street where such schemes are operative, and come out with $100, $500 and sometimes even $1000 as cash advance loans. This hassle free availability of cash as and when required, really, has given it immense popularity. This relatively new concept is starting to sprout up all over the country. They are the latest trend in predatory lending practices. So far they have still managed to fly, in most states, under the radar of regulation. A cash advance or payday/paycheck loan is usually secured by a personal check. Some companies want your bank account or credit card information, in addition to the check. You write a post dated check or agree to have an amount withdrawn from your bank account sometime in the future, usually within 14 days (the standard payroll period). After completing the agreement/contract you are given an amount that is less than what you have agreed to pay. They don't charge interest; instead there is a fee. The difference in amount is the fee for the loan service. But it sounds like the ultimate in convenience. However, there are many things to consider when getting a cash advance loan. All the online personal loan services need your personal information, such as your Social Security Number, and bank account numbers as well. But how do you know that they are really a cash advance loan company and not some online scam? And if they really are a cash advance loan company, how do you know that they are honest and will deal with you, fairly and with integrity? A reputable cash advance loan company will be licensed in the state that they are based in, and won't be afraid to tell you this. It is mandatory for all cash advance loans companies to have a state license. In fact, some states don't allow payday loans. So they will not issue a license to any company in that state for the purpose of payday loans. If when looking at a particular lender, you don't see information about their state license, e-mail or call them to find out if they have one. You must ask any cash advance loan lender you are thinking of doing business with if they are licensed and regulated for dealing in payday loans in their state. Ask them about their data security and about how long they've been around. If they are cagey and evasive, go somewhere else! The philosophy behind cash advance is very simple: more risk, more money. The risk in cash advance is very high, as lenders don't take any security. Thus they expect a high return in interest. The normal charges are some 10% to 15%; so if you take $200 as cash advance then you will have to pay $220 or $230 within 14 days. In a way, cash advance is the best deal, as you don't need to rely on your friends, relatives and neighbors for such a small amount. And if you're sure you can repay it within 14 days, you don't need to worry much about the fees and interest rates. Sometimes, if you want the money badly, cash advance is an easy option. |
