In today’s economy there are many individuals who have been affected by job loss, mergers and layoffs. Consequently their credit history is bruised and even bad. This is where cash advance loans come in because most generally, all a person needs is a source of income and a checking account.
With most of the companies who sponsor loans of this type offering the application online, a person can apply for a small, short term loan and have the money deposited into his or her checking account in a day or two.
Sometimes there are financial emergencies that come up out of the blue and there is now warning or chance of preparation. A child may have to be admitted to the hospital, or a vehicle that the family breadwinner depends upon for transportation to and from work breaks down, or there is a family emergency with an out of town relative, all of these situations causing a financial need.
The interest rates on loans of this type are usually much higher than would be a normal rate for a person of good credit. This is because usually the borrowers of this type of loan do have bad credit.
The term of the loan is usually set so that the loan is repaid at the time of the borrower’s next paycheck in full along with interest. So if the loan was for $500, then the $500 will be due at the borrowers next paycheck along with interest.
Some loans are made with installment payments being a repayment option, and that depends upon the loan company, the amount of the loan, and the circumstances.
This cash advance loan system is being used all over the world in many countries as a means of providing emergency cash where there would be no recourse with conventional loans.