When most people look for a short-term loan for the first time, they usually assume that traditional lenders are their only option. Going through a traditional loan channel means that your credit history will be scrutinized, which can spell disaster for consumers with low income and blemished credit files. Securing a paycheck advance can help to solve your short-term financial issues if you plan ahead and have the means to pay it back in full.
Determining How Much You Need To Borrow
Qualifying for a cash advance isn't difficult if you meet the minimum lending requirements. Generally, applicants need to have a job, be self employed or receive some other type of verifiable income such as a pension, disability, child support or an annuity. However, even though it may be easy to qualify, you should still use cash advances in a responsible manner.
Remember that you will be paying interest on every dollar financed. Borrow only the minimum amount needed to pay for emergencies and surprise expenses so that the loan can be paid back as quickly as possible. Also check for clauses in your contract that would penalize you for repaying your cash advance early.
Comparing Interest Rates And Repayment Schedules
Just like any other financial product, cash advance companies offer a number of flexible repayment terms to potential customers. While some lenders offer perks such as streamlined online applications and multiple convenient repayment options, you should focus first on finding the lowest interest rates available with reasonable repayment schedules. Talk to a cash advance company like Cash Depot Inc. about selecting a rate and repayment schedule that works best with your budget.
Satisfying Your Cash Advance Obligation
Cash advances generally have higher interest rates than traditional loans, but you can also incur costly fees if you are not diligent in repaying your loan. Pay attention to when each installment payment is due and have a backup payment method on hand in the event that there is a technical difficulty. If there are any fees associated with paying online or via phone, you should use a free repayment option, even if it is less convenient.
Although repaying a cash advance won't help to boost your credit score, it can teach you a lot about personal finances. Successfully repaying a cash advance can also be advantageous if you have a future financial emergency. Cash advance companies enjoy repeat business and reward responsible consumers with lower interest rates and larger loan amounts, just like traditional banks.