LearnBonds.com

Best Cash Advance Online Loans 2020

Cash advance online loans range between $100 and $1000. Some lenders offer as much as $5000 depending on the loan terms.
thadues
Author: thadues
Last Updated: March 27, 2020

When you have a financial emergency, cash advance online loans may be the fastest solution. But before you take one, you should think it through because it can leave you mired in debt.

Best Cash Advance Online...So what are they? They are short-term loans targeting people who need immediate cash. They also have other names like payday loans, no-credit-check loans and guaranteed loans. In the 21st century, there’s no shortage of these loans online and even in storefront locations.

They usually have high fees, and as such, you risk getting stuck in a debt cycle if you do not know what you were getting yourself into from the get-go.

In this piece, we shall make one assumption – that you have weighed your options and cannot get a loan fast anywhere else and that your need is pressing, and you need the money the same day. In the guide, we shall dive into everything you need to know about cash advance online loans, from how they operate to their costs, pros and cons and FAQs.

On this Page:

    Apply for a Payday Loan Now! | Best Payday Lender 2020

    Our Rating

    Viva payday loan app company logo
    • Loans From $100 to $15,000
    • Instant Application & Approval
    • Bad Credit Considered
    • Lenders From All 50 US States Onboard
    Viva payday loan app company logo
    Note: Cash advance loans are short-term loans. You are required to pay back the principal amount plus interest and any accrued fees in between 30 and 90 days, depending on the lender.

    How do Cash Advance Online Loans Work?

    In the 21st century, the internet is everything. Most businesses have moved online to sell their services and products. Lenders have also decided to leverage the internet and its technology to reach more people and make more money.

    Now, since cash advance online loans are short-term loans, they have strict guidelines, hefty rates, and fees if you breach their contract. Luckily, the federal and state government have rules and regulations designed to protect borrowers in their time of need. For instance, all lenders need should adhere to responsible lending (more on this later).

    Application

    The first step to getting a cash advance loan is to fill out an online application. In this form, you will detail your personal information as well as your financial status. The lenders will use this information to determine if they will approve, reject, or make changes to the application. Because of this, you should ensure you provide the correct details.

    But what if the details are wrong? How will they know? Like many short term loans operating in the US, cash advance loans are offered to borrowers with bad credit history. This means that lenders do not consult with financial bureaus in the US. Because of this, lenders open themselves up to a lot of risks.

    To protect themselves, they take the initiative of confirming your employment status. Typically, lenders will call you a few minutes after submission to confirm the details. But other times, they decide to call the employer you’ve listed on the application. The purpose of the call is to confirm you are an employee and hold the position you claim to. But don’t worry they do not disclose your intent to take a loan.

    If they are content with what they see and hear, they will approve the loan. If they are not, they will reject it. They only make changes to the loan amount if they feel it is too high, and you will have a hard time repaying and meeting your basic needs after. Lenders are allowed, no, expected to do this under responsible lending.

    After Loan Approval

    Before you get to this stage, you already know how much the loan amount will cost you. Most lenders have a loan calculator on their platform, which makes it easier for borrowers to decide on affordability.

    Once the loan is approved, the lender will send a loan agreement. This document contains the loan amount, the rate, and the due date of the loan. You should read through the document to ensure you are comfortable with the terms before you commit to it.

    If you are okay with the details, the lender will deposit the loan amount into your bank account within the day (assuming you applied well before the close of business).

    How long does the process take?

    Cash advance online loans are not called fast for no reason. After submitting your application, it is reviewed and approved within 15 minutes. And depending on the payment method, you will have the money a couple of hours after.

    Repayment

    Cash advance online loan amounts vary between $500 and $5000. The amount you borrow and the lender you choose determines how long you have to repay the loan. Most lenders expect you to make payments within a month – on your next payday.

    So how do you make the payment? For online applications, most lenders will debit your bank account for the payment. This is why they all ask for your bank and insist that it is active. If you apply at a store location, you will write the lender a post-dated check. The post-dated check contains your bank account details and the routing number.

    Note: The problem of allowing lenders to deduct payments directly from your bank account is that if you don’t have enough money, some lenders will take an overdraft. You will have to cater to the cost of the overdraft as detailed by your bank. But some lenders are kind enough to ensure you have enough money before making payments.

    You can also opt to make manual repayments. With manual payments, you have to be on toes with the payment dates and repayment amounts. It also helps that most lenders will call you two days to the due date to remind you of your payment.Best Cash Advance Online...

    During this call, if you feel you might not make the payment on time, you should voice your concerns. The lender might offer an extension for the loan, but only after you have paid the interest and other fees for that month. Though it gives you more breathing space, the longer you have the loan the more expensive it is.

    Types of Cash Advance Loans

    There are different types of cash advance online loans. But the one thing they have in common is the high-interest rates and fees.

    Credit card cash advance

    This is the most popular type. Borrowers get a line of credit through their credit cards. You can get the money from an ATM, through a check or cash from your bank. Like other emergency loans, credit card cash advances don’t have grace periods.

    Merchant cash advances

    These same day loans are for businesses that have a poor credit history. They use the cash advance to finance business activities. These loans are usually paid with future credit receipts or with funds the business receives from its sales. Enders offering these emergency loans don’t consider the credit score of your business but instead consider several data points including the money that you receive through online accounts like Skrill and Paypal.

    Payday loan

    This is a cash advance loan offered to individual borrowers. The loan amount is usually between $50 and $1000 and has fees of about $15 for every 4100 borrowed. Still, payday loan lenders don’t consider credit score but rather focus on the size of the borrower’s paycheck and the state regulations on loan amounts.

    How much do Cash advance online loans cost?

    To make an informed decision of whether a cash advance online loan is a product for you, you should know how to calculate the cost of the loan. Say you borrow a loan of $500; you might incur a fee of $75. This means that by the end of the loan period, you will repay $575. In this case, $75 is the cost of the loan. Lenders calculate this amount (APR) from interests and other loan fees that apply.

    Now you are probably wondering what in the world an APR is. In simple terms, it is the cost of borrowing money. Many borrowers tend to think that the annual percentages and the interest rates are similar. While this might be true for the credit card companies, it’s not for bad credit lenders.

    The interest rate is the percentage of the principal amount the lender charges when you borrow money while APR is the interest and all other loan fees. Therefore, the APR gives a better idea of how much a loan will cost as a percentage.

    How cash advance online loan lenders calculate APR

    The calculations aren’t difficult because there is a constant formula used.

    Note: If the cash advance loan doesn’t have extra fees (this is extremely rare), replace the fees with a zero in the formula.

    Here is a practical example to explain how the formula works.

    Say you take a $1000 loan repayable over 180 days. In the end, you will repay $75 in interest. And if the loan has an origination fee of $25, you should so include that in the formula. When you plug these figures into the formula, you get an APR of 20.28%.

    But why is the APR important?

    Easy, because it gives you a good idea of what you will pay for the loan. If the APR is too high, you should stay away from the loan because it will only strain your finances further.

    Types of APR

    There are two types of APR;

    • Variable APR – this type changes and is tied to the index interest rate as the prime rate. This means that if the prime rate increases, the variable APR increases as well. Some people love variable APR because it provides low-interest rates. However, these rates change with time and could eventually be against you.
    • Fixed APR – this is an APR that doesn’t change depending on the index when repaying the loan. As such, they are predictable and make budgeting easier.

    Do I qualify for a cash advance online loan?

    With the tough financial times, the demand for emergency loans has increased over time. Lenders get hundreds if not thousands of new applications every month. And unfortunately, not all borrowers qualify for the loan or are serious. So to reduce the workload and ensure that every borrower is serious, lenders have screening criteria. These qualifications include;

    • You should be between 18 and 21 years old (depending on your state of residence)
    • You should be a US citizen
    • You should have an active current or savings account
    • You should live in a state that the lender serves
    • You should have a stable income (enough to repay the loan amount and still have enough for basic needs)

    Why you should consider cash advance online loans

    Fast processing

    Best Cash Advance Online...

    If you have a financial emergency that needs immediate attention, cash advance loans are good solutions. You only wait for a business day for the money to hit your account.

    Offer bad credit borrowers

    Whether you have low or no credit history, lenders will give you a loan. This is a huge plus because traditional banks only extend loans to borrowers with a good credit score.

    Loans approved after meeting the minimum requirements

    Once you meet the minimum requirements we outlined above, you can consider your loan approved. The minimum requirements are a good thing for borrowers who don’t want to deal with the paperwork and want to save time.

    You can get the loan at the comfort of your home

    Many lenders have an online presence. The application forms are available online. Once you submit the application form and the loan is approved, the lender wires money to your bank account.

    Why you should be cautious of cash advance online loans

    Cash advance online loan lenders advertise their products as being easy and fast to get. The fact that they give loans to borrowers with poor credit scores piques the interest of many. But if you are the kind of borrower that always has shortfalls of cash and cannot keep up with your bills, the expensive cash advance online loan might be the end of you. It is because of this that Washington DC and 14 states don’t accept payday loans.

    Below are other reasons you should think twice before getting cash advance loans

    They have finance charges

    These loans have borrowing fees, which increase the APR to between 300% and 500% (for some even higher). This might not occur to you when you are taking the loan because most lenders display the flat dollar amount. But upon closer inspection, it will dawn on you. If you borrow $500 and repay an interest of $75 plus a finance fee after two weeks, the APR would be 391%. When you compare this figure with what the federal APR average of a standard personal loan lasting two years, at 10.36%, you understand why we are saying its expensive right?

    There is no credit check and possibly no credit building

    Most banks will check your credit score and if you can afford the loan before they approve it. However, payday loan lenders don’t conduct a hard credit check. This is great for those with poor credit scores, but it often means that the lender will not help you improve your credit score either because they will not report your faithfulness to the main credit bureaus.

    You might get a bank overdraft

    Most emergency loan borrowers have complained that lenders have overdrawn their accounts and caused them to incur extra fees with the bank. Very few lenders will consider the amount in the bank before processing a repayment.

    Verdict

    Cash advance online loans are saviors. But they could be your downfall if you don’t consider the cost and your ability to repay the loan. Before submitting your application, bear in mind that there is no grace period and that it is a short term loan (meaning it lasts for a maximum of 90 days).

    Also, the fact that cash advance online loans have high APRs doesn’t mean you cannot find and affordable lender. Do your due diligence and find an affordable lender – loan brokers can reduce the time you take.

    Apply for a Payday Loan Now! | Best Payday Lender 2020

    Our Rating

    Viva payday loan app company logo
    • Loans From $100 to $15,000
    • Instant Application & Approval
    • Bad Credit Considered
    • Lenders From All 50 US States Onboard
    Viva payday loan app company logo

    Glossary of Loan Terms

    Credit Score

    A credit score shows your creditworthiness. It's primarily based on how much money you owe to loan or credit card companies, if you have ever missed payments or if you have ever defaulted on a loan.

    Guaranteed Approval

    Guaranteed Approval is when, no matter how bad, your credit score its, your loan application will not get declined.

    Cash Advance

    A Cash Advance is a short-term loan that has steep interest rates and fees.

    Collateral

    Collateral is when you put up an item against your loan such as your house or car. These can be reposessed if you miss payments.

    Credit Limit

    A Credit Limit is the highest amont of credit a lender will lend to the borrower.

    Credit Rating

    Your Credit Rating is how likely you are to fulfil your loan payments and how risky you are as a borrower.

    Default

    If you default on your loan it means you are unable to keep up with your payments and no longer pay back your loan.

    Interest

    The Interest is a percentage based on the amount of your loan that you pay back to the lender for using their money.

    Fixed Interest Rate

    Fixed Interest Rate is when the interest rate of your loan will not change over the period you are paying off you loan.

    Late Fee

    If you miss a payment the lender will charge you for being late, this is known as a late fee.

    Principle

    The Principle amount the borrower owes the lender, not including any interest or fees.

    Prime Rate

    This is the Interest Rate used by banks for borrowers with good credit scores.

    Secured Loan

    A Secured Loan is when you put collateral such as your house or car up against the amount you're borrowing.

    Unsecured Personal Loan

    An Unsecured Personal Loan is when you have a loan based soley on your creditworthliness without using collateral.

    Variable Rate

    A Variable Rate is when the interest rate of you loan will change with inflation. Sometimes this will lower your interest rate, but other times it will increase.

    AAA Credit

    Having an AAA Credit Rating is the highest rating you can have.

    Bridge Loan

    A Bridge Loan is a short term loand that can last from 2 weeks up to 3 years dependant on lender.

    Installment Loan

    An Installment Loan is a loan that is paid back bi-weekly or monthly over the period in which the loan is borrowed for.

    Federal Student Loan

    If you obtain a Federal Student Loan to pay your way through College ten you loan is held with the U.S. Department of Education.

    Financial Aid

    Financial Aid is funding available to post-secondary education students in America.

    Guarantor

    A Guarantor co-signs on a loan stating the borrower is able to make the payments, but if they miss any or default the Guarantor will have to pay.

    Home Equity Loans

    Home Equity Loans is where you borrow the equity from your property and pay it back with interest and fees over an agreed time period with the lender.

    LIBOR

    LIBOR is the London Inter-Bank Offered Rate which is the benchmarker for

    Debt Consolidation

    Debt Consolidation is when you take out one loans to pay off all others. This leads to one monthyl payment, usually with a lower interest rate.

    FAQ

    How much cash advance loan can I get?

    The loan amount depends on the lender and the information you provide. But generally, cash advance online loans range from $100 to $1000.

    Is my cash advance loan secure and private?

    Yes, lenders strive to maintain high privacy and security standards. Moreover, disclosing information to third party companies is forbidden under federal law.

    Can you renew a cash advance online loan?

    Yes, you can. However, lenders require that you pay off previous loans and that your contact information is up to date. Usually, a subsequent loan is higher than the previous but this depends on whether your financial situation has changed and your faithfulness in repaying the loan.

    What happens if I cannot repay my loan instantly?

    The loan contract binds borrowers and lenders. However, lenders are lenient and offer extensions for when times are tough. Most only require that you repay the interest before they can approve the extension.

    How do lenders calculate the due date?

    Generally, cash advance online loans are due on your next paycheck.

    US Payday Loans A-Z Directory

    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    thadues

    Thadeus Geodfrey has been a contract writer for Lernbonds since 2019. As a fulltime investment writer, Thadeus oversees much of the personal-finance and investment-planning content published daily on this site. With a background as an iGaming expert and independent financial consultant, Thadeus’s articles are based on years of experience from all angles of the financial world.

    HTML Snippets Powered By : XYZScripts.com