When you need cash, there are a lot of options available. One of the most controversial, however, is a cash advance loan. While everyone has different views on cash advance loans, there is a need for this type of financial service.
What Is a Cash Advance Loan?
A cash advance loan, which is sometimes referred to as a payday loan, is a short-term loan in which an individual can receive money quickly. Usually cash advance loans are used in cases of emergencies such as when people need money the same day. Like other types of loans, a cash advance uses collateral. However, unlike a car loan in which the company holds the deed of the car as collateral, the company uses the individual’s checking account as collateral. As such, most cash advance loans require only a checking account, a regular source of income and a personal identification card to be approved.
The Cash You Need Quick
The biggest advantage that cash advance loans have over others is how quickly people are approved. Most people think that cash advance loans only provide small amounts of money between $100 and $500. While this is a typical amount, it’s possible for people to be approved for upwards of $1,000, according to the Chartered Financial Analyst.
Fees Are Usually Lower Than Bounced Checks
When people find themselves in hardships, bills don’t stop coming. Cash advance loans can put money in their pockets so that they avoid typically higher fees. For example, many cash advance companies charge a fee between $15 and $20 on a $100 cash advance. The person who barrows the money is usually given around two weeks to pay the loan back. Compared to the average bounced-check fee of $50 or the $45 charge for paying the utility bill late, it’s easy to see why many people choose cash advance loans instead.
Most cash advance loan companies also provide other services such as cashing checks, money orders, prepaid cards and cashing business checks. Some even provide financial budgeting help for people who need it. While it’s true that cash advance loans might not be for everyone, it’s hard to deny that they have a place in the world of financial options.
Trusting a Cash Advance Loan Company
The key to having a good experience with a cash advance loan company is to find a trustworthy one. An example of such a company is Amscot, which has proven itself over the years partially because of the hard work of CEO Ian MacKechnie. While working with Amscot, he continues to serve on the board of the Community Financial Services Association of America and the Financial Service Centers of Florida. His experience in the financial marketplace has allowed him to build Amscot as a pillar of support for people in financial need.