Reasons for the popularity of cash advances
Cash advances have grown in popularity over the years. Even though several types of loans are available, most of the people who are in need of quick cash turn to cash advance loans. Despite the warnings against these types of loans, people keep using them to acquire extra cash during tough times.
This trend in the lending industry has not become popular for no reason. Here are the reasons why people turn to cash advance loans to help them in times of financial distress.
Easy access to Fast Cash
People who need cash quickly turn to cash advances for help in an emergency. It’s a perfect solution when you need immediate cash. Most cash advance lenders promise quick approval and release the money within 24 hours. There are also cash advance lenders who can entertain borrowers 24 hours a day, 7 days a week. Compared to traditional loan options, it can take time to apply for and process your application.
Another added convenience that a cash advance lender offers their borrowers is the reduced number of requirements they have compared to other loan options. Cash advance loans only need four simple requirements from you if you apply for them. These requirements are:
- You must be at least 18 years old.
- Proof of identity such as government issued ID or SSN.
- You must have a stable source of income, such as a regular job or a well-established business.
- Current account active.
These requirements may not be difficult for you to acquire, as you may already have them all before you even intend to get a cash advance loan. It would be best to prepare everything in advance to ensure that your application will be expedited. You can verify Creditninja.com to find out what common requirements you will need.
No credit score inspection
More and more people are choosing to apply for a cash advance loan because the cash advance lender does not care about their borrower’s credit rating. As long as you have a stable income and can afford the principal you borrowed plus the interest rate, you will likely be approved.
Most of the people with bad credit who are in need of quick cash resort to cash advance loans to help them with their needs. This is where they can get extra cash quickly and hassle free. Even though there are more loans for bad credit borrowers, the cash advance loan is the fastest among them all.
Short term commitment
A cash advance is a short term loan because you will have to pay the amount you owe on your next payday schedule, which is why it is also called a payday loan. When you take out a cash advance loan, you are simply taking your next payday upfront and with an interest rate.
On your next payday schedule, be sure to pay the amount you owe plus the interest rate. After that, you will no longer have any obligations to the cash advance lender, and you have created a great relationship with the lender that you may or may not need in the future.
Higher approval rate
The majority of people who applied for a cash advance loan were approved and their money released within 24 hours. As long as you are eligible, the likelihood of your application being approved is high.
Will less likely affect your credit score
Compared to traditional loans or credit cards, where you will have to pay the amount you owe over a long period of time, you will be more at risk of uncertainties that will arise in your finances. These missed payments will then be reflected on your credit report and lower your score. On the other hand, a cash advance is required to pay once and in the weeks following the release of the loaned amount.
Due to all the advantages mentioned above, people today tend to prefer cash advance loans over other alternatives. But always keep in mind that you should only resort to this loan option if you need the extra cash for a worthy purpose. Cash advances should not be taken to finance unnecessary expenses.