Access to short term money. Sounds like the perfect solution, doesn't it? Cash advances, or payday loans, are exactly what they say they are - cash loans that are designed to be repaid against your next regular monthly pay cheque. Cash advance loans are a great way of accessing additional funds for unexpected expenses, or if there's just too much month left and not enough money. Relying on credit cards or regular bank loans to pay for these little financial hiccups could leave you with a much bigger bill to repay, thanks to mounting interest rate charges and handling fees.
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Cash advance loans are different. They are short term, small loans that take into account your ability to repay the amount in full when you next receive your regular salary payment. Consequently, they are rarely more than a few hundred pounds in size and can be for as little as £80.
However, there are a few other considerations before you rush to your computer and apply for a cash advance loan. The providers, as with all other lenders in this economic climate, want to promote 'responsible borrowing' amongst their customers and so require that anyone applying for a cash loan has a good credit record. Most carry out credit checks - not only to confirm your status and credit rating but to also protect both themselves and their customers from fraudulent applications. You must be at least 18 years old and a UK resident to be eligible to apply.
You must also have a bank account and be able to show that your regular salary is paid into this account by direct debit on a monthly basis. Cash advance loans can be taken out by those who are paid weekly or fortnightly but the loan will be proportional to the amount being paid in. The loan is repaid against your next regular salary payment, so when applying consider carefully how much you can afford to pay back without leaving yourself in the same predicament the following month.
As with many other financial services cash advance loans are now available online, giving you the opportunity to get a much faster approval than with more traditional paper-based applications. These online applications also remove the need for the borrower to submit endless reams of paperwork, reducing the time down from a few days or even weeks to just a few minutes for an answer. If approved, the funds will be paid directly into your bank account, giving you instant access to a cash injection.
Cash advance loans are not just for unexpected bills or car repairs. They can be used for anything you want - a deposit on a bargain holiday break, a present for a loved one, or a replacement mobile phone. Once the money is in your account, what you choose to do with it is entirely up to you.
Do remember, however, that the loan will be repaid from your next regular pay cheque so make sure you can afford to take out the loan in the first place and that it does not impact negatively on your finances in the following month. Choose a reputable lender (a little time on the Internet will give you all the information you need). If everything is in place and you feel confident that you can meet the repayments without any difficulties, a cash advance loan is an ideal way of getting hold of a little extra short-term money quickly and easily.
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