Cash Advance Lending - How Does Check Cash Advance Work?
Are you wondering: how does check cash advance work? If you are, then you're in luck! Directly below is a clear cut explanation of how check cash advance loans work and how you can apply for one quickly and easily.
How Check Cash Advances Work
Basically, a check cash advance is a quick loan given by a cash advance lender. This loan is typically between $250 to $1000 and requires no collateral to be put up. You simply give the lender a bit of information -- name, employment, monthly wages, etc. -- and then he verifies and approves the loan. Depending on the arrangement, you will either have until your next payday to pay the loan back or you'll have until the following payday to pay it back (2 weeks).
In layman's terms; you take out a loan for an amount similar to your weekly or bi-weekly paycheck and then you pay that loan back (plus interest) within 1 to 2 weeks.
Requirements for a Check Cash Advance
Unlike with bank loans, you need very little to be approved for check cash advances. As long as you have a job (employed for more than 3 months), an active checking account, and the amount you are looking to borrow is less than or equal to that of your weekly/bi-weekly paycheck, approval is practically guaranteed.
How Much Does it Cost?
As you can well guess, check cash advances are not free. These loans, like any other loan, will have interest, fees, and even penalties. The interest rate attached to your loan will vary depending on the lender you're dealing with. However, it's safe to expect an interest rate of around 15%-20%. If they want to charge you 25% or even 30%, look elsewhere for the loan.
What Happens If I Don't Pay?
In short, they come after you. Not physically of course, but financially. In addition to the massive penalties and interest charges they'll tack onto the loan, they will also attack your credit score like a ravenous dog. Attacks on your credit rating may not sound like a big deal at first; but the longer the loan remains unpaid, the more your credit rating will suffer.