Finance Roll

With all the financial planning we do, there are still bound to be a few emergencies in life. It could be a huge medical bill, an unexpected insurance payment, urgent repair work or even a broken down car - the reasons could be many. When you are in dire straits and you need money urgently, cash advance loans or payday loans can help you bridge the gap.

What are cash advance loans? These are unsecured loans that are designed to meet short term emergencies. These loans are high risk loans and therefore come at premium rates of interest. Cash advance loans require minimal verification. Therefore, these loans are approved almost immediately and the amount is disbursed within a few hours. These loans are available to almost all borrowers, regardless of their credit rating. Full repayment of the loan with interest has to be done in 14-30 days. Generally, these loans can be rolled over once or twice only.

The first step in availing cash advance loans is to find a reputed lender. Some of the common mistakes borrowers make include applying for payday loans through unsolicited emails that land in their inboxes, ignoring the fine print on the agreement and choosing the lender without ascertaining their reputation. If companies offer loans without any verification, their interest rates will be correspondingly high because they are financing a high risk loan. In such cases, it is important to check out the credentials of the lender.

The second step is to apply for the loan. These days, most lenders have a strong online presence. This means, borrowers can submit their application online and wait for the check to arrive in their account. Most lenders require standard information like your banking details, basic identification details and the loan amount. Once the application is submitted, the lender will verify the information and upon approval, send in the payment to your bank account. The exact term and amount will be fixed by the lender. At the time of loan repayment, the amount will be withdrawn automatically from the bank account through a post dated check collected by the lender from the borrower at the time of disbursing the loan.

A crucial part of the process is reading the loan agreement form upon receipt. This form contains details about repayment. In case the borrower is unable to repay the full amount with interest at the end of the term, they will have the option of rolling over the loan. This is an expensive process as it involves extra fees and additional interest rates. That is why it makes financial sense to repay cash advance loans as agreed, failing which you might end up in a debt trap. Most reputed loan vendors have a friendly customer service cell. The duty of this cell is to explain the loan, its utility and terms to customers. This makes it possible for borrowers to procure loans that suit their financial means.

In case you need a large amount, you may not be able to get cash advance loans from a single lender. In this case, you will need to approach multiple lenders. But keep in mind that lenders make use of highly accurate systems to learn details of outstanding loans and default payments.