Emergencies happen to the best of us. At such moments, ready cash is always a primary need. But, what would you do if you were not financially prepared for these situations and upon that you were in the middle of the month? Obviously, you cannot wait for the arrival of your pay check as your need is urgent. It is here that online cash advance system comes to your help.
Cash Advance against Your Pay
In cash advance system, a limited amount of cash is made available to you for ready use. There is no need to indulge in strenuous paper work and legal formalities for obtaining such loan. All you have to do is to submit a proof of your job and regular income. Hence, you can get fast loan against your pay within 24 hours of applying for the same. This is as simple as that!
Cash Advance- Pros and Cons
There are many online lender firms that offer you easy cash advance facility. However, you should be aware of both the good and bad points of this system.
Pros:
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In this system, you can get easy cash despite bad credit history. So, if you are trapped in a small debt and cannot pay it off with your credit card, turning to an online payday lender can be your best bet.
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This is the fastest method of getting cash. Within 24 hours of submitting the request, you can get cash deposited directly to your bank account.
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You do not need to produce volume of documents while applying for a payday loan, as is the case with bank loans and credit card loans. It generally takes 10-15 minutes for filling an online form and you also do not have to personally visit the lender.
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Since these are short-term loans, you generally pay them back by your next salary. Hence, you borrow money from the market in an organized manner and there is no chance that you will be trapped in heavy debt over the time.
Cons:
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Interest rate can be very high in such loans. If you manage to pay off the loan within short time period, then that is fine. However, if you default in timely payments, the compound interest may rise to exorbitant figures. Hence, you will end up paying much more than you actually got.
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Money lenders generally charge a nominal fee for cash advance that may vary from $10-20 for every $100 loan. However, some companies take undue advantage of customer’s plight and charge much higher upfront fee. This leaves the concerned customer quite at loss.
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Another big disadvantage of these loans is their addictive nature. The easy and fast nature of these loans may make you careless and extravagant.
It is crucial to exercise good level of intelligence and diligence in case of any financial matter. If you keep a check on your spending habits and be extra careful while choosing a money lender firm, you can keep all the aforementioned cons at bay.