Cash advances have earned popularity over the years. Even though more loan types are available, most people who need quick cash are leaning towards cash advance loans. Despite the warnings made against these loan types, people do not stop using this to acquire extra money during trying times.
This trend in the lending industry has not become popular without reason. Here are reasons why people are turning to cash advance loans to help them during financial distress.
Easy Access to Fast Cash
People who need quick cash resort to cash advances for help during emergencies. It is a perfect solution when you need immediate cash. Most cash advance lenders promise quick approval and release cash within 24 hours. There are also cash advance lenders who can entertain borrowers 24 hours and seven days a week. Compared to traditional loan options that can take time to apply and process your application.
Another additional convenience a cash advance lender gives their borrowers is the fewer requirements they have compared to other loan options. Cash advance loans only need four simple requirements from you if you apply for one. These requirements are:
- You must be at least 18 years of age.
- Proof of identities such as government issued ID or SSN.
- You must have a stable income source, such as a regular job or a well-established business.
- Active checking account.
These requirements may not be challenging for you to acquire as you might already have all of them even before you plan to obtain a cash advance loan. It would be best to prepare all of it beforehand to ensure that your application will be expedited. You can check Creditninja.com to know what are the common requirements you will be needing.
No Credit Score Inspection
More and more people choose to apply for a cash advance loan because the cash advance lender does not care about their borrower’s credit score. As long as you have a stable income and can pay the principal amount you borrowed plus the interest rate, you will likely be approved.
Most bad credit individuals who need fast cash resort to cash advance loans to aid them with their needs. This is where they can get extra money quickly and without hassle. Even though there are more loans for bad credit borrowers, the cash advance loan is the quickest amongst all of them.
A cash advance is a short-term loan as 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 acquire a cash advance loan, you just take your next salary in advance and with an interest rate.
On your next payday schedule, make sure to pay the amount you owe plus the interest rate. After that, you will have no more obligations with the cash advance lender, plus you have created a great relationship with the lender whom you may or may not need again in the future.
Higher Approval Rate
The majority of people who applied for a cash advance loan were approved and had their money released within 24 hours. As long as you qualify, the likelihood of you getting approved with your application 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 in a lengthy period, you will be more at risk of uncertainties that will come up in your finances. These missed payments will then reflect on your credit record and decrease your score. On the other hand, a cash advance is required to be paid once and within a few weeks from the release of the loaned amount.
Because of all the mentioned benefits above, people nowadays tend to prefer cash advance loans over the other alternatives. But always keep in mind that you should only resort to this loan option if you need extra cash for valid purposes. Cash advance loans should not be taken to fund unnecessary expenditures.