Cash advance is one of the most advertised and familiar terms in web world. The title is enough to mean what cash advances actually do. It is designed to do instant arrangement of money for those who are on tight budget and need some hard cash to meet their financial commitments till the next paycheck is received. The loan is secured against an agreed contract according to which the pay off period kicks in as soon as the paycheck hits the borrower’s account. The point to note is the lender grants loam without obliging the borrowers to put up any collateral. The entire transaction is made on the basis of some proofs, the most important of which is a steady flow of the borrower’s income.
Payday loan is the other name of cash advance. As per the format of a loan – no matter whether the loan is borrowed from a traditional lender or a private financial institute –it is not justified to term cash advance as a loan. It refers to payment of some advanced cash that is guaranteed by your monthly paycheck. The reason why cash advance is quite a touted talk can be attributed to both its plus and minus factors. The prime positive aspects of cash advances are as follows:
- No requirement of collateral
- No checking of credit background
- Cash tinkles your account within a few days of application submission
- Facility of ‘roll-over’
However, the above ‘points to impress’ can never take away from the fact that cash advance is a costly help in terms of interest payment. The demography shows that majority of the borrowers are from middle class background and so high interest puts a burden on these people with lower income ceiling. They often fail to make scheduled pay-off and have no way but to go for ‘roll-over’ option. This feature actually refers to ‘loan renewal’ program which is – truth must be told – a dangerous proposition. Instant loans like cash advance are really a good option when you need a healthy sum to manage your household expenses. But you can explore its benefits in full only if you take care to meet the timely payment obligation.
The rapid growth of instant cash industry reflects the very fact that these days, people have growing appetite for such lending structure. Traditional loan is made accessible to those with high credit ranking though one needs to wait for weeks to receive funding. It is also an issue that you will not get loan if no collateral is placed. So, the prospective borrowers are going with instant loans options, of which cash advances is the first choice