Reasons for the popularity of cash advances
Cash advances have grown in popularity over the years. Although several types of loans are available, most people who need money quickly turn to cash advance loans. Despite the warnings against these types of loans, people keep using it 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 advances to help them with financial difficulties.
Easy access to fast cash
People who need money quickly turn to cash advances for emergency assistance. It is a perfect solution when you need cash immediately. Most cash advance lenders promise quick approval and release money within 24 hours. There are also cash advance lenders who can entertain borrowers 24 hours a day, seven days a week. Compared to traditional loan options, it can take time to apply and process your application.
Another added convenience that a cash advance lender offers 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 them. These requirements are:
- You must be at least 18 years old.
- Proof of identity such as a government-issued ID or social security number.
- You must have a stable source of income, such as a regular job or an 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 consider getting a cash advance loan. It would be best to prepare everything in advance to ensure that your request 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 lender doesn’t care about their borrower’s credit rating. As long as you have a stable income and can pay the principal amount borrowed plus the interest rate, you will likely be approved.
Most people with bad credit who need quick cash turn to cash advances to help meet their needs. This is where they can get extra cash fast and hassle-free. Even though there are more loans for bad borrowers, the cash advance loan is the fastest of all.
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 simply take your next paycheck up front 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 have no further obligations with 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 had their money released within 24 hours. As long as you qualify, the likelihood of your application being approved is high.
Less likely to 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 reflect on your credit report and lower your score. However, 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 nowadays tend to prefer cash advance loans over other options. But always keep in mind that you should only resort to this loan option if you need the extra money for a worthy purpose. Cash advances should not be used to fund unnecessary expenses.