MAKING THE RIGHT CHOICE WITH ONLINE CASH ADVANCE
A financial crunch is something that almost all people of the working class face at some time or other. It is a known fact that most families, who live on a paycheck that arrives at the end of each month, will not have enough savings. Sometimes the savings are so meager that tiding through even a small emergency expense becomes a task. In such situations what does a person do?
If an expense is an urgent one, applying for a bank loan is out of the question, their procedures are length, involve detailed paperwork and take way too long to come through. Other options include borrowing from friends or family. But this option comes with a risk of causing embarrassment in case you are not able to repay on time. Also, if the friend or family denies that sum, it might become quite awkward between you two.
In such cases having bad credit might just add to your problems as it rules out the credit card advance option as well.
If you need a small sum for a short period of time, typically until your paycheck arrives, what do you do? This is where an online cash advance comes into play.
While many may criticize it and call it a money making business, this is one of the easiest ways to get through a financial crunch. When all doors towards financial help close, an online cash advance will always be there for you.
Choosing the right online cash advance company
So if you have finally decided to opt for a cash advice, opting for an online cash advance is often the easier way out. With an online cash advance, you do not have to even bother to walk up to an office. You can apply and get approved for a loan sitting within the comfort of your home.
But often isn’t the end of your problems. Do the constant, ‘get cash fast’, ‘instant approval of loan’, ‘get cash today’, ‘safest cash advance’ and other such advertisements often leave you confused?
While you have decided to opt for an online cash advance, which company to choose is often confusing. As there are many companies that offer such short term online cash advance. But each company is different, and it is up to you to know how to differentiate the good, the bad and the apt ones.
Then again, if you have a bad credit, then finding an online cash advance company that offers loan notwithstanding a bad credit plus does not charge hefty fees becomes a task.
In such situations, you can check from family or friends if anyone has any personal good or bad experiences with a particular company or if they can recommend a trustworthy source. As there is always a risk of ending up with a wrong company with some of the highest APR (Annual Percentage Rate) that could end with you paying a much higher sum than you planned. Or even worst ending up in a vicious cycle of financial debt. If varied opinions leave you more confused you can read along to find out more.
We understand that choosing the perfect online cash advance provider can be a daunting task, and so we have for you a few pointers that you can bear in mind before you choose any company to get you an online cash advance.
Tips to get good online cash advance
- Get to know how a payday loan works
The moment you face a cash crunch, do not go looking for an online cash advance. You need to check how a payday loan works. There are many companies that provide such loans but the rates they charge may vary. Though there may be certain capping according to different state laws but, you must check the rates charged by each company and how they go about the paying back procedure.
In case of an online cash advance, the company will typically ask you to give them access to your bank details for an electronic transfer of the payback sum. This payback sum will include the primary amount you took as a loan along with the rates they charged for the loan for that period of time.
At the end of the stipulated time frame, the company will make the electronic transfer and get the payback. Of course, you can expect a call from the company a day or two prior to the transfer but that again may vary from one company to another.
Almost all competent online cash advance companies will offer services that include a cash loan ranging from $100-1000, the most common period of payback is about 14-15 days. The interest may vary but range anything around 390% to 780% on an average.
While the company may not do a credit check, but you will still be expected to have a valid source of income which helps you qualify for the loan and an identification proof.
- Watch out for your State’s regulations regarding lending laws
Online cash advances and their rates vary among different states. There are some states that have completely prohibited a very high rate for online cash advance. While there are other States that have a certain rate capping for all competent online cash advance providers.
There are also many other States that have legislation which allows online cash advance depending on the check written by the customers with a high rate of interest without any rate cap.
And so it is extremely important that you check the State laws of your hometown before plunging into the first online cash advance you lay your hands on.
You can browse the internet and find access to all the State laws regarding money lending, which could help you choose the right provider.
- Research ratings and rankings of the online cash advance providers
This procedure might take some time but will go a long way in helping you with your loan proceedings. Never ever trust any company on the face value or what it advertises or promises. You need to do some homework, even if you are looking at borrowing a small sum. Firstly you can ask around your family and friends if anyone has had any experiences with any particular company. Depending on the reviews you must go ahead in your search.
Spend some time browsing the internet and check for the top 10 ranking online cash advance providers. Now you look up each of these companies and filter out those who payback schemes, rates, and other details suit your pocket.
Having done that, you further check which of those companies is going to give you a loan at the best possible prices. You can go to individual websites of each of these companies to get a look and feel of the company.
Yet another important factor is that you check for the reviews of other customers who have previously taken a loan from the company. You can check these reviews of many sites that compare these companies. These reviews will give you an insight into how the company actually is and if it actually delivers all that it promises or otherwise.
- Check if the online cash advance provider can work in your State
It can be truly heartbreaking if you have done all the hard work mentioned above and found that one company that seems perfect to help you get your online cash advance. And you find out that company does not provide service in your State.
This would mean going back to the basics. Because of certain specific State laws, not all online cash advance work everywhere. Though they do function in most States, checking their services before deciding is a good option.
You can spare yourself more trouble by reading the fine print or the frequently asked questions and other details usually mentioned at the end of any websites.
Most of the competent online cash advance providers function in maximum States barring a few which have strict prohibitions against payday loans.
- Check whether the online cash advance attempt is being met with a loan finder or a direct lender.
When you are looking for an online cash advance, it is common for a person to look up for names on the internet. But here you need to pay attention to what the company is doing about assisting you with the payday loan. This is especially true in case you have a bad credit and are looking for companies that provide online cash advance without any credit check or those who provide loans even to those with a bad credit
There are certain companies whose main job is to find the perfect match between a loan finder and a loan giver. They themselves do not disburse a loan on their own. They are the link between the one requesting a loan and a loan provider. These companies do not make any online cash advance loan offers. There merely take the information you provide and submit the same to the lending company.
On the other side are companies who are lenders themselves. So if you get in touch with such companies you are directly dealing with those who will disburse your loan. These companies will be the ones who actually will give you the online cash advance and not just a list companies who will be able to provide you an instant online cash advance.
- Choose a company that has membership of OLA or CFSA
Whenever you check out the profile of a company in case of a prospective online cash advance, always check is they are a member of OLA or CFSA.
OLA means Online Lenders Alliance; membership with them assures that the company abides by their set code of conduct and best practices. This includes details like keeping their customers fully informed and treated in all fairness of the trade. This means the company will not hold back any information and there will be no hidden prices or surprise expenses coming along. A customer will not be made to pay any unreasonable penalties or extra costs and will only be charged all that is fair.
Similarly, being a member of CFSA which means Community Financial Services Association of America. This is a national organization that is also dedicated towards the companies involving only in best practice. They are dedicated towards a sole purpose and that is to progress and provide financial empowerment to the citizens through short term loans of small amounts. They also deal with companies who involve in fair practices of the trade.
Membership with any of these organizations helps to reinforce a person’s confidence in the company. You know for sure that you are not dealing with any shady company but are associating with a genuine company that will only deal fairly with you.
- Keep an eye on who you are dealing with
When requiring an online cash advance especially with bad credit, there are many good companies that provide the required loan with no credit check and in no time as well. However among there are also many suspicious companies looking to trap customers who are unaware. There are some points to watch out for like companies who charge an additional monthly or weekly ‘fee’ which is over and above the rates. Companies that have a bad name in terms of reviews, or companies who charge an exorbitant late fee and include it when you give them debit card access. Also, companies who try to convince you to take a higher amount than what you asked, which obviously comes at a higher rate of interest.
It is best to stay away from companies that have a reputation for such dealings, as these companies are like predators looking to trap you in the vicious cycle of debt.
- Watch out for the company’s reputation
When looking at online cash advances, always make sure you look up the company and its reputation online. There are several sites where employees get to review their own company. This could help you get an insight into what the company is like from within. Also reading reviews from past customers will help you get an idea. Sometimes, customer reviews may occasionally be biased; if you look at the general trend you will get an idea.
- Bear in mind the interest rates and fees
One must never move ahead with an online cash advance without checking all the options. Even among the top companies that provide online cash advance, there may be a vast difference in the rates of interest. Make sure you check all and choose a reputed company with the lowest interest rates.
However, if your State has a rate cap on the online cash advance, the APR may be more or less competitive. However, there is a certain factor known as ‘fees’ where the companies try to make up for their loss.
Make sure you check all the details of a company along with the various kinds of fees they charge and then calculate how much it is going to cost you. The fee factor is sometimes the crucial factor that can tell a good company from a shady one.
- Use calculators available online
When you plan on taking an online cash advance from a particular company, they will always furnish you with a properly itemized bill showing you how they are getting you the best deal they can.
Yet another reminder, never take anything the company puts forward on face value. The calculations may be designed such that it appears pleasing and make you believe that you are only getting the best deal.
It is always best to cross check these facts. If you look up the internet there will be many online calculators available. If you use a reputed one and put in your details, you will be able to see exactly and where are you being charged.
So you get a real picture of how much you are going to be charged.
Conclusion:
By now we know that online cash advance is loans that are easily available. They almost never require a credit check and the money will be disbursed in almost no time. But we must never forget the fact that these are loans that are best avoided especially since they come at a high price.
You get just about 2 weeks or until your next payday to get through your financial crisis. While an online cash advance is comforting to think of, as you know the money will be made available if needed. However, one must make an endeavor to try and save at least some amount from their monthly paycheck.
This will always come handy in case an unforeseen expense comes forward.
Even when opting for an online cash advance loan provider always do enough homework before hand that will save you headaches and a financial crisis later on. Make sure you look out for the top 10 ranking providers in your State. From them, look out for the ones who provide you the best rates. Companies who are members of OLA or CFSA must get a preference over others.
Once you get the required online cash amount never ever forget about it. Since it is only a short term loan, you will have little or no reaction time. Make sure you are prepared for the payback well in hand.