Financial emergencies are widely considered part of life. But that does not make them easy to handle. For those with poor credit histories, getting the cash needed quickly can be difficult, but thanks to the availability of cash advance loans for bad credit borrowers, that challenge can now be met.
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Known to be the fastest and most accessible loans available on the market, they are the perfect option when fast loan approval is essential. Their accessibility comes from the fact they are granted on the back of an upcoming paycheck, so the money is an advance on the paycheck.
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Cash advance loans have some clear advantages, but there are also some compromises that need to be accepted. Interest rates are very high and the pressure to repay the loan over a very short period is quite acute.
The Main Advantages
The main advantage of getting cash advance loans for bad credit borrowers is that the chance to get the funds so desperately needed exists. Most traditional lenders prefer to avoid applicants with very low credit scores, so funds to pay unexpected medical bills are not usually easy to secure.
Another key advantage is that these loans come with fast loan approval a standard feature. This is down to two reasons: firstly, the lender carries out no credit check, so time is not wasted on that; and secondly, approval rests on just the income factor. If a large enough paycheck is confirmed, then there is no reason to reject the application.
With all the boxes ticked, approval can be given in a few hours. And with checking account details provided, the funds can be transferred within a few hours too. That means, inside 12 hours, a cash advance loan can be accessible, and the emergency dealt with.
The Main Disadvantages
But there are downsides to getting cash advance loans for bad credit. Chief amongst them is the interest rate charged, which is extremely high. Depending on the lender, a rate of between 15% and 35% can be charged. For example, a $1,500 loan at 30% needs $1,950 to be cleared.
Also, the loan limit is very low, and while very small sums, like $100, can be accessed, the maximum is about $1,500. Having fast loan approval is a major plus, but is of little use if the balance needing to be paid is more than $1,500.
The third negative aspect is that cash advance loans need to be paid so quickly. And since full repayment comes straight from one paycheck, little or nothing may be left over to meet regular monthly obligations. Sometimes it is possible to stretch the repayments over 60 or 90 days, but expect extra charges and more interest paid.
Advantages of Online Lenders
Considering the pros and cons is one thing, but neither have any relevance until the lender is chosen and applied to. The Internet is the best place to get cash advance loans for bad credit borrower.
This is partly because online lenders are experts in lending to people with low credit scores, but also because terms can also be quickly and easily examined on a comparison site online. Also, fast loan approval is a standard feature, with online application forms submitted and assessed within as little as an hour.
But as with all businesses operating over the Internet, it is important to check out their reputation with the BBB website. If they have an A rating or above, then getting a cash advance loan from them could be the best course of action.