Are Cash Advance Loans For The Underemployed?

A lot of people are unable to bring in enough money from their jobs. At the end of most of the months they find themselves asking one question, “How do I get a cash advance?” There are bills that need to be paid even when the next paycheck does not arrive in another month. Sadly, the underemployed does bring home money, but the amount is never enough.

When a person reaches this kind of critical financial situation, the next question that comes to the mind is how to get hold of some cash so that the immediate necessities can be met. Let us find a solution to this problem.

The answer lies in cash advance loans. However, the direct lenders will always need to check proof of the applicant’s employment. This is checked by referring to the direct deposits on a bank statement. Any responsible lender will check the applicant’s take home wages very carefully while processing the loan. In case the applicant is not likely to be able to pay off the loan from the next paycheck, the lender may or may not sanction the loan.

It may alsohappen that the lender grants only a part of the loan amount requested. Instead of getting frustrated at his business decision, try to understand his situation as well. The lender, after all, is running a business and would want to get back his money on time. The reason for rejection may include any or all of the following:

  • The lender is trying to protect his business against a default loan.
  • Your bank account may show records of overdrafts for other previous expenditures.
  • You have taken other cash advance loans which remain unpaid.
  • You use up your paycheck quickly in order to pay for other costs and the pay period bears signs of other financial struggles.

A responsible lender will not only try to protect his business but also analyze the consequences of this loan on your bank account. A fast cash advance draws a fee for every $100 borrowed. High interests are added to this if the loan is not repaid within the stipulated time period.

Some lenders also charge application fee and other hidden charges in case the borrower fails to return the money on time or does not meet any other terms that he had initially agreed to. It is hence very important for an applicant to go through the terms and conditions carefully to check for any type of third party money.

It is possible that when you are in a financial crisis, you may not want to consider the final costs because all you want is to meet the pressing needs of the time. However, anybody who takes into account the bigger picture and the complete transaction will be making a smarter decision.

Obtaining a cash advance is a relatively simple and fast process. However, your income may not qualify for the loan with some of the direct lenders. Instead of being upset or falling prey to the predatory ones who would lend you regardless of your income only to extort you in the future, consider other options. Call up other direct lenders to see if you qualify. If you do not get any positive response, consider a garage sale or borrowing from a friend. Try to cut back on expenses that you can avoid. If going without a cell phone helps in paying off a high priced loan, go ahead and do so. It might feel uncomfortable at first but may be a good financial decision.

In the long-term, you would do well if you do not have many short-term loans piling on your back. Always remember that a quick cash advance loan is helpful only if you can pay it off on time.