When you have a cash emergency that needs a quick fix, cash advance online loans can help you take care of it. This is especially the case if you haven’t gotten any luck from cheaper options like borrowing from friends and family. Also, other options like credit card loans may be tempting because of their convenience, but they may leave you in more debt than before!
Here, we aim to shed more light on cash advance online loans, how they operate, their pros and cons, their interest rates and other terms and conditions, their eligibility criteria, and tips on how you can increase your chances of being approved for cash advance online loans from lenders.
What Cash Advance Online Loans Are
Cash advance online loans are short-term financing options that allow you to borrow money that will act like your salary advance to cover unexpected expenses or emergencies. They are ideal for anyone who wants instant cash in their bank account and wants to avoid the inconvenience of traditional financing options. These loans are also often referred to as ‘payday loans’ because they’re usually repaid within a period of 14 days to 30 days.
Lenders of cash advance online loans are easy to access and they don’t require you to have a good credit history. In fact, some lenders will offer you loans even when you don’t have any credit history at all! Their interest rates are usually coined as a lump sum, mainly because the repayments are done as a ‘one-off’ payment, as opposed to recurring payments with interest charges.
While many cash advance online loan lenders may not consider your credit history and can offer you up to $500 in cash advances, there are always high-interest rates charged for that as a way for the lenders to protect themselves. Unlike lenders and issuers of credit card loans, you’ll hear cash advance online lenders referring to the annual percentage rate (APR) as subscription charges or fast-funding fees.
How Cash Advance Online Loans Operate
The method of operation of cash advance online loans is straightforward. Thanks to the internet, you can access cash advance online services from anywhere in the US with the help of your smartphone device. As a borrower, all you have to do is fill out a loan request online form, upload any support documents in a matter of seconds, and if everything checks out, your loan request will be approved.
Once you accept the lender’s offer, you’ll receive all the paperwork detailing the terms and conditions of the cash advance and interest charges including any additional fees that will accrue in the event that you fail to repay the loan when it's due. You might also be required to sign papers that will authorize the lender to debit your account until you fully repay the loan.
As a responsible borrower, you’ll definitely want to make sure that you repay the cash advance loan in full on or before the stipulated repayment date, to avoid any unnecessary fees. It’ll also help to maintain a good reputation with the borrower so that when you have another financial need in the future they can confidently lend to you again.
Another amazing perk that comes with an online cash advance is that many lenders are adopting mobile phone apps for their services. This means that you can borrow money from anywhere in the world and have the funds credited to your bank account almost instantly!
If you’ve ever been in a situation where you needed to find a way to get an emergency loan to pay for something unexpectedly, then you know how life-saving cash advances can be when you’re short on cash! Online cash advance loan platforms allow you to take out an online cash advance and take care of emergencies such as a medical bill, wedding gift, or car repair expenses mostly within minutes of applying. All you require is a strong internet connection and a bank account and voila!
Advantages of Online Cash Advances
The benefits that come with this loan option include:
The application is online and you don’t need to visit any physical office
You can employ the services of an online broker if you prefer not to apply for cash directly
Decisions are made fairly quickly and you can know if your application was successful in a matter of minutes
Once approved, funds are transferred to your bank account or online wallet equally fast!
Disadvantages of Cash Advance Online
Although an online cash advance may seem like the perfect life-saver when you’re in need, it’s worth noting that there are some downsides as well, which include:
The high-interest rates are a huge cost, compared to the amount you borrow.
In case you default or roll over the online cash advance several times, you might find yourself paying two or three times more in interest charges.
Exceeding the repayment date without any prior communication can lead to a lender debiting all the money in your bank account without notice
Online Cash Advance Pre-Qualifications
The minimum qualifications for a cash advance online loan are also very few, and it’s always advisable to know them very well before you start your application. This will prevent you from pausing on your application to fetch one document or another, or to check that you meet one precondition or another when you’re already well into the application. Different lenders have different eligibility requirements, but some are standard. The standard ones include:
Be at least 18 years old and a US Citizen
Have a steady monthly income (with bank statements to verify this, where possible)
Have an active checking account
Have a valid email address
Have a valid phone number
Have a valid social security number (or alien registration number or ITIN)
You may also have to submit a few more details of your personal information, but they should revolve around the above requirements. With that said, there are a few mistakes to look out for, which may cause your application for an online cash advance loan to be denied even if you meet all the above requirements.
The first is ensuring you don’t lie about your personal information. Whether it's your source of income or employment status, be very honest from the start of the process to the very end. The contrary can bring you countless problems if your lender finds out. It may be a huge problem when filing tax returns and you may even land yourself in court for this type of misrepresentation.
Also, don’t take out more than one online cash advance at a time. This is mainly to cover yourself as it might be hard to service more than one online cash advance loan because of their high-interest rates and the short repayment period.
When You Have Bad Credit or No Credit At All
Bad credit is among the most common concerns for borrowers as they fear it may affect their ability to get lent. Many lenders often run a few credit inquiries or checks for every borrower so that they can see if the borrower is worth lending. There are generally two types of credit inquiries, soft credit inquiries, and hard credit inquiries.
Soft credit inquiries are inquiries that don’t play a crucial role in the lender’s decision-making process and they don’t impact the borrower’s credit score. However, hard credit inquiries involve lenders requesting the borrower’s credit information which includes their credit history. Hard inquiries influence the decision-making process of the lender and it can be the reason a lender can decide to approve the borrower’s loan application or reject it.
Many online lenders who offer cash advance loans normally do soft inquiries and they combine the results with other crucial factors like the borrower’s income source so they can make the final decision on whether to lend to the borrower. This means that even when your credit is bad or you don’t have any credit history, you may still be able to get your loan request approved.
Keep in mind that some lenders may also decide to perform hard inquiries that minimize your chances of getting approved if you have poor credit.
Frequently Asked Questions(FAQs) on Online Cash Advance Loans
What can I use online cash advance loans for?
There are several needs that an online cash advance can help with which include unexpected bills and emergencies, a wedding gift, car repairs, medical bills, and home renovations. Ideally, any emerging expense that can’t wait for your next paycheck, but which would have been first to clear if you decided to wait for the paycheck is generally the approach to use here.
Where can I find an online cash advance lender?
Many online payday lenders are easily available online. Cash Payday Loans is a great platform that connects you with many lenders that can provide you with an online cash advance loan within minutes. With the platform, you have higher chances of getting approved for a loan as most of our lenders are always waiting for loan applications to which they respond with feedback almost immediately. Moreover, you’ll only need to submit one application and we’ll send it to many of our lenders right after you click the submit button.
Will I be charged to use the Cash Payday Loans platform?
Not at all. It’s entirely free to look for a loan through our platform. Also, there are no hidden fees or unexpected charges along the way as you interact with lenders. The platform only gets compensated by lenders when borrowers succeed in getting loans. And the compensation doesn’t affect the total charge of your loan.
How fast can I get an online cash advance?
It can be as early as the same day you send your application and as late as the following day provided that the day is a business and you’ve been approved for the loan. Of course, each individual case is different and we cannot guarantee any specific time frame. Some borrowers even receive their money within minutes of sending their applications. Lenders outside of our platform may or may not have the same quick turnaround depending on who you’re working with.
How can I hasten the loan process so that I can get the money within minutes?
We can’t guarantee you that every time you apply you’ll get the money within minutes, however, there are things you can do to increase your chances. These include applying for the loan very early in the morning, typically before or around 10 a.m. If you are looking for a same-day loan, applying earlier ensures lenders have enough time to look into your case and process the funds before the end of the day if there are many applications sent on the day you choose to apply. Secondly, ensure you have all the requirements with you before you begin your application. It’ll save you the time you may spend looking for documents and other requirements which may make you delay the whole process.
What is the maximum I can borrow for an online cash advance?
It depends on many factors and the limits are usually preset by lenders after considering various factors like your income and others. That said, you can generally borrow amounts from as little as $100 to as much as $2500, and in some cases $5000.
How is my limit established?
The factors that determine how much you’re eligible to borrow include your disposable income, the information you shared on your application, and your history with the lender (if you have borrowed again in the past). Nonetheless, it’s worth noting that your limit may change based on any or all of these factors.
What if I can’t make my payments within the due date?
In the unfortunate event that you realize that you may not be able to settle the online cash advance by the set repayment date, you should be sure to communicate with your lender immediately. Call customer service as early on as you can (certainly not one day before the due date) and let them know of your situation. The lender will either extend your repayment period, allow you to skip a payment, or even reduce your payment. All these options depend on how well you’ve repaid your loan so far, in a case where your repayment is in multiple payments and not a lump sum. However, the lender may also add some charges due to the loan extension.
How do I make sure that my application is successful?
It’s hard to have an approach that guarantees approval every time you apply, but there are ways to maximize your odds. Following certain steps can help convince the lender you’re creditworthy. The first step is to ensure that you meet all the eligibility requirements before you even start making your application. Not all loan products are for everyone and neither are online cash advances universal or ‘one-size-fits-all’ solutions. Once you meet all the expected minimum requirements, ensure that your application is as honest and accurate as possible (use your name as it appears in your ID by avoiding nicknames and also be honest with your income amount and income source).
What are the common reasons lenders can reject my application?
Apart from inaccuracy, your application for an online cash advance can also be rejected because of failing to meet the affordability threshold for the cash advance. If you can’t repay the loan from your income and still take care of essential expenses, your lender is most likely to reject your application. Also, having other outstanding debts may hinder you. Most lenders may overlook your credit history, but your current loan obligations with other lenders are a huge telling factor. Ensure that you don’t have any outstanding cash loans with anybody else so that you can comfortably repay your online cash advance.
Can I reapply for an online cash advance?
You can reapply for an online cash advance, either after it has been rejected, or after you’ve successfully cleared your previous cash advance. The important thing to consider is to ensure that you update your details that may have changed. It also helps to be up-to-date with all your repayments.
What if my application is still rejected after all that?
If you still fail to get approved for your online cash advance even after working on the initial reason for loan rejection, you should contact the lender for further advice. There may be some misunderstanding somewhere that the two of you can fix and see you get approved afterward. Remember, many factors count when lenders are deciding whether or not to extend a cash advance to you. And it might be prudent to seek to know the particular reasons for your rejection. Generally, some lenders may not accept huge requests the first time, so you may want to furnish them with additional documentation. Lenders who require collateral may qualify you once you provide more collateral.
How can you tell that your application has been approved?
The answer is quite simple: it depends on your lender’s application method/style. Many online cash advance lenders usually grant you instant notifications, but others may prefer to send you an email or mobile phone message.
How can you predict if you’ll get your application approved?
The first consideration for you to make is to determine that you meet the eligibility criteria and that you furnished your lender with all the necessary support documents. It’s also advisable to be ready for a rejection of your online cash advance application, although this will be hard if you diligently followed all the steps of the application process.
Do I need to have a bank account to apply for a cash advance?
Like many other lenders, online cash advance lenders always want to reduce the risk of non-repayment as much as possible. If you consider that these lenders are willing to cast a blind eye to your credit history, it's only understandable that they’ll require a bank account as it’s among the best ways of verifying that you have an income, you use your money responsibly and you’ll be able to repay the loan. It’s also the usual means for many lenders to credit your online cash advance funds.
Other than cash advance loans, how else can I get money before my upcoming paycheck?
You can consider asking your close friends and family, approaching organizations known to give donations, putting up for sale some of the items you have in your house that you don’t use that much, and working with credit unions.
Which other types of loans can I get online apart from Cash Advance Loans?
I have a lot of things in my life, what should I do to not forget to repay my loan on time?
You can work with automated payments. Several options like standing orders (where you request your bank to send money to your lender’s account on the loan’s due date), direct debit (where your lender will have the freedom to take from your bank account the loan amount you’re supposed to pay when it’s due), and continuous payment authority (where your lender can access your account and choose the date and amount they want to take from the account) exist.
What are the best ways to keep a good credit score for long?
Keeping a close eye on your credit reports is among the basic steps. Ensure the credit bureaus from where lenders request your credit information have the correct and most up-to-date information about your account. In case you detect any irregularities on the reports, raise your concerns with the bureaus right away. Also, ensure you’re always paying any loans you’ve taken without delays or defaulting. Moreover, if you have several scattered debts, you can take a debt consolidation loan that will combine all the debts, reduce the amount you have to pay each installment, and even heighten your credit score.
Is pursuing a cash advance online a recommended option?
From a financial management standpoint, a cash advance online may or may not be a good option depending on how you approach it. Generally, taking loans can help provide funds when you need them but they also come with extra charges that have you paying more. So, if you can get an option, like family and friends that’ll allow you to pay back the same amount you took, that’s much better. If you can’t get that, then a cash advance can be a consideration provided that you repay the loan as you agreed with the lender. Defaulting on the loan and pushing your repayment dates can have you pay more and even make it hard for you to get out of debt.
Where should I go for more answers about online loans that I may have?
You can visit our Frequently Asked Questions page where we’ve answered the most popular yet challenging questions about online loans.