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Online Cash Advance Loans
We're going to go through, in this article, what the application for a cash advance loan entails, the sort of situation in which you can usefully use a loan of this sort and also the expense that is involved in terms of interest rates. So by the end of the article you should know everything you need to in order to decide whether it one is going to be good for you.
How to Apply for Cash Advances
The online application for a cash advance is extremely simple. With lots of loans you are going to be asked many different questions and the whole process can take a long time. With a short term loan though the only important point are going to be about how much you get paid and when.
It's important that you get paid every month if you are going to qualify for a short term loan like this. That's because they are designed to last for about a month, that is how the lender will have determined how much money they are going to be willing to lend and what the interest rates are. So you are going to have to make enough in a month to be able to cover the loan plus the interest rates.
Something that a lot of people are concerned about when they go for a loan is whether they are going to have a good enough credit rating to be able to get the loan. That's not something that you're going to have to worry about with loans of this sort though because a credit check is not performed. The reason being that short term lenders don't have to worry about whether you're going to be able to keep up with a number of different repayments, you only have to make one repayment.
Uses
It's not just the application process that is a lot different for a cash advance than it is for a long term loan, the way that you use the money is going to be very different as well. A long term loan is usually used for some kind of expensive luxury item it would normally take a long time to save up for. That clearly isn't possible with a short term loan though.
In fact short term loans tend to be used for the opposite sort of thing as a long term loan will be. While long term loans tend to be used for expensive luxury items, a short term loan will be used for relatively inexpensive emergencies. After all if it's not an emergency then you won't need the money before you're next paid.
The kinds of situations in which you can use these short term loans then are going to be any time that you need some money urgently for something important. This covers everything from running out of cash on holiday to needing to get car repairs done so that you can get to work the next day. There are really no limits on what the situation could be though.
Interest Rates
When you are looking at the interest rates on cash advances, you have to be careful and make sure that you are looking at the actual rates and not the APR (annual percentage rate). People get confused about how expensive these loans are by looking at the APR, which after all is only telling you how much you'll be charged if you pay back a month-long loan after a year.
In terms of how much you are actually going to pay in interest, that is likely to be in the vicinity of 25%. You might be thinking that even that is a lot for a single month, but you can also consider that this is the total amount of interest charged. And it is less than gets charged with long term loans overall usually, as over the term of a long term loan they often charge around 50-100%. So really these short term loans are not as expensive as they seem.
How to Apply for Cash Advances
The online application for a cash advance is extremely simple. With lots of loans you are going to be asked many different questions and the whole process can take a long time. With a short term loan though the only important point are going to be about how much you get paid and when.
It's important that you get paid every month if you are going to qualify for a short term loan like this. That's because they are designed to last for about a month, that is how the lender will have determined how much money they are going to be willing to lend and what the interest rates are. So you are going to have to make enough in a month to be able to cover the loan plus the interest rates.
Something that a lot of people are concerned about when they go for a loan is whether they are going to have a good enough credit rating to be able to get the loan. That's not something that you're going to have to worry about with loans of this sort though because a credit check is not performed. The reason being that short term lenders don't have to worry about whether you're going to be able to keep up with a number of different repayments, you only have to make one repayment.
Uses
It's not just the application process that is a lot different for a cash advance than it is for a long term loan, the way that you use the money is going to be very different as well. A long term loan is usually used for some kind of expensive luxury item it would normally take a long time to save up for. That clearly isn't possible with a short term loan though.
In fact short term loans tend to be used for the opposite sort of thing as a long term loan will be. While long term loans tend to be used for expensive luxury items, a short term loan will be used for relatively inexpensive emergencies. After all if it's not an emergency then you won't need the money before you're next paid.
The kinds of situations in which you can use these short term loans then are going to be any time that you need some money urgently for something important. This covers everything from running out of cash on holiday to needing to get car repairs done so that you can get to work the next day. There are really no limits on what the situation could be though.
Interest Rates
When you are looking at the interest rates on cash advances, you have to be careful and make sure that you are looking at the actual rates and not the APR (annual percentage rate). People get confused about how expensive these loans are by looking at the APR, which after all is only telling you how much you'll be charged if you pay back a month-long loan after a year.
In terms of how much you are actually going to pay in interest, that is likely to be in the vicinity of 25%. You might be thinking that even that is a lot for a single month, but you can also consider that this is the total amount of interest charged. And it is less than gets charged with long term loans overall usually, as over the term of a long term loan they often charge around 50-100%. So really these short term loans are not as expensive as they seem.
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