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How to identify legitimate cash advance lenders

Cash advance loans are often considered as a form of predatory lending. However, they become lifesaver under circumstances while you have no other option to get immediate supply of money to cope with the sudden cash crunches. With the loan lent by cash advance lenders, you can fulfill your urgent, but small financial requirements and get back on your feet once again. Although cash advance loans are usually levied with high interest rate, yet they come really handy during the time of financial emergency.

Things you need to furnish

To apply for and get a cash advance loan from any of the cash advance lenders, you must have a bank savings account with positive balance. You must be an adult legal citizen of America with a permanent employment with the same company prior to applying for a cash advance loan.

Size of cash advance loans

Cash advance loans may range from $100 to $1000. The loan amount or the size of the loan mainly depends on the lenders and varies by the lenders. It also depends on the borrower’s monthly income and need. Generally, cash advance lenders prefer the borrowers to have a minimum income of 1000 dollar per month.

Banking requirements

Usually the bank in which you have a savings account is likely to allow you to debit and credit your savings account, so that you can take out the money even without a checking bank account. A good banking history would help you in this matter.

Direct deposits

If the bank doesn’t allow debiting and crediting of the savings account and if you don’t have a checking account to cash in the check, then also you can get a cash advance loan. The cash advance lenders may ask you to directly deposit the paycheck issued by your employer into your savings bank account.

Online cash advance lenders

You may grab the advantage of getting a cash loan from any of the online cash advance lenders and avoid the hassle of maintaining a checking account and also save your valuable time.

Tips to choosing genuine cash advance lenders

In spite of imposing rules and regulations for controlling the Annual Percentage Rate (APR) on the loan, there are some lenders who don’t abide by these rules and as a result, many distressed borrowers become the victim of rapacious lending and have to pay an arm and a leg in interests. Therefore, even if you’re in dire need of money, you must be choosy and careful about finding out a genuine lender from the flock of rapacious cash advance lenders. Here are the tips that you may follow to ensure that you’re going to deal with a legitimate lender.

  • Look for no-credit-check lender – Usually traditional institutions like banks and credit unions don’t provide cash advance loans. Therefore, you need to depend on high interest cash loans from private cash advance lenders. Make sure your chosen lender doesn’t conduct any credit check so that you can qualify to get such a loan even if you don’t have a good credit profile and FICO score as well. Also check whether or not the lender charges abnormally high APR along with processing fees.

  • Choose one that suits you – You must shop around and compare the terms and interest rates offered by different no-credit-check cash advance lenders. After comparing them, choose one that serves your needs the best in all terms including the loan amount and the repayment period. However, make sure you have the financial ability and mentality to pay back the entire amount of loan within stipulated time.

  • Avoid hefty paperwork – Many cash advance lenders require the borrowers to fill out a complicated and lengthy application form. It is really time-consuming and daunting, especially while you’re in hurry. Therefore, avoid a lender that requires you to fill out a lengthy form and do huge paperwork. However, irrespective of the lender, in order to get the loan approved you must furnish some documents. The documents may include proof of your employment, income proof, identification proof, address proof and details of bank savings account.

  • Choose a prompt lender – Although almost all cash advance lenders approve loans and disburse cash faster than any traditional lender, yet you may opt for the fastest one. Generally, people, who are badly in need of money, opt for high interest cash advance loans. They opt for such loans so that they can cope with the abrupt cash crunches promptly before the situation gets worse. Therefore, if the lending process takes much time, then the actual purpose of taking out the loan would not be served. So you must deal with a lender that ensures loan approval and disbursement within a single business day.

  • Look for flexible repayment period – Make sure you deal with any of the cash advance lenders that provide flexible and easy repayment period. For instance, they may allow you to repay the amount from next 2 paychecks if you’re not very far from your next paycheck day. Also, if you somehow fail to pay back the loan in time, the lender may provide you with a suitable repayment option.

Cash advance loan is good until and unless you’re confident about paying back the loan in time. Make sure you deal with one of the most legitimate cash advance lenders so that you don’t fall prey to a predatory lender.

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