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Cash Advance USA

As more and more businesses have an online presence, and more consumers become comfortable with online e-commerce transactions, lenders have added online storefronts that offer online cash advance loans. Each loan is handled completely as an Internet transaction, from the initial application to approval and from initial money transfer to repayment. The application takes only minutes to fill out. Then, because information on the application is verified through the Internet, approval can be given in minutes, and the transfer of the cash to the borrower’s account can be completed just as quickly.

Borrowers can do extensive Internet searches to find a lender that offers the exact loan offering for them, and then handle the transaction any time of day or night, in the privacy of their own homes. This flexibility, plus the ease of getting a cash advance loan, allows the consumer greater control over his or her finances.

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A disadvantage to this increasingly automated process is that this type of loan, which was designed to be used only occasionally, in emergency situations, may be overused. Customers who would find this type of loan process appealing tend to be younger, less established, and more technologically educated. They may also be less knowledgeable and more impulsive about finances.

Cash advances are available in amounts from $100 to $1,500, varying with the lender, the state in which the borrower resides, and requirements that must be met by the borrower. Because of the risk to the lender for this type of loan, interest rates are high. Depending on the lender and on the credit situation of the customer, some documents may still need to be faxed between the two parties, but an increasing number of lenders are moving to fully automated web sites. Consequently, if the borrower does not have convenient access to email, to an automated bank account, and to the Internet, he or she may be shut out of this type of loan.

Terms for repaying the cash advance type of loan are the same whether the borrower handles the transaction online or goes to an actual loan office. Payment of the loan, plus the flat transaction fee, is due on the next payday (or within two weeks). Reliable online lenders will list the amount of the fee in both a flat fee and APR version. Because the entire transaction is handled online, the lender automatically deposits to and withdraws from the customer’s bank account.

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* Cash-Advance-USA.org provides information and research on cash advances/payday loans. We are not a payday lender or broker, nor are we necessarily affiliated with the companies profiled on this site. Not all products and services are available in each state.