Need Money Fast? Cash Advance to the Rescue

Where are you going to turn when the electric bill, the gas bill, the insurance and the rent are all threatened by a giant catastrophe? Maybe not even a big catastrophe. Sometimes, all it takes is an unexpected trip to the doctor or a traffic ticket to push the best-laid budget into the red. You can usually make things meet, but this time it?s all gone wrong. Now may be the time to consider a cash advance.

A cash advance is a small, unsecured loan against your next paycheck. You get the money you need today and pay it back in two weeks when you get paid again. It?s simple to apply for, and it can all be done online.

To qualify for a cash advance you must have an income of at least $1000 and be an American citizen, at least 18 years of age. You will also need a checking account because your loan will be electronically deposited right into your bank account. Your income must be from a job you have held for at least six months or from a program such as Social Security, disability, or alimony payments. You will most likely be asked to provide proof so make sure you have a current pay stub, a statement of benefits, or your divorce papers handy in case you are asked to fax them to the lender.

There are a few things that will disqualify you from getting a cash advance. One is active duty military service. The military has programs to help its members so check with your commanding officer about accessing those. You will most likely be disqualified if you have held your job less than 6 months, make less than $1000 a month, or have a new checking account. Recent bankruptcy or unemployment will also disqualify you. Lenders want to see a history of stability and the ability to repay the loan. If you have outstanding payday loans, or have defaulted on one, you will not be able to get a cash advance.

Some lenders offer the first cash advance free of interest and fees. Generally, this cash advance will be for a small amount, maybe $100 to $200. After you pay it back, you will be able to borrow larger amounts, up to a maximum of about $1500 based on your salary and your lender?s limits.

Applying for a cash advance is simple. Fill out a simple online form, including your bank routing number and account number, add a few references, and hit send. You will be contacted by phone or email and asked to verify the information in your application. You may also be asked to fax proof of income or benefits. Once you are approved, the cash advance will be deposited in your checking account within 24 hours unless you apply over the weekend.

The interest rate on a cash advance is ten to twenty five percent of the amount of the advance. This means that if you borrow $100, you will repay between $110 and $125 at the end of the term. Because these are short-term loans, meant to be used strictly in emergency situations, the term of the loan is generally two weeks. They can be extended but each extension will result in more interest and fees.

There are three ways to pay back a cash advance. The most common is to repay the full amount, plus interest and fees, on your next payday. The lender will pull the repayment directly from your checking account. If you can?t make the payment, be sure to contact the lender at least 48 hours in advance to make other arrangements.

If you can?t pay the full amount, the next best choice is to pay as much as you can plus interest and fees. Then extend the cash advance for another two weeks. You will be charged interest and fees again, based on the amount of the remaining balance owed.

As a last resort, you can just pay the interest and fees and roll the full amount of the loan over into a new cash advance. Obviously, this will cost you the most in interest and fees. As a result, some states no longer allow this type of repayment. Check with your lender to find out the laws in your state.

A cash advance may be just the solution to deal with the unexpected emergencies that crop up. Make sure you shop around and do your homework. Look for the lowest interest rate, the fewest fees, and the best deal you can find. And make sure you budget to repay the cash advance as quickly as possible. You cannot apply for another until the current one is paid off, and there is a waiting period between cash advances.