Cash Advance FAQs

When the need for immediate money arrives, it can be a challenge to find a resource in the little time you have to come up with the money. Now there is the option of using a cash advance loan, otherwise known as a payday loan. Some of the answers to common questions about cash advance loans may surprise you.

• How can I get a cash advance loan?
  There are three ways to apply for a cash advance loan. You can fill out an application in person, answer questions to determine your eligibility over the phone, or apply via the Internet.
• How long will it take to find out if I am approved for the loan?
  Depending on which way you applied, you can usually find out in minutes or in some cases by the next business day. In many cases, you will learn the lender's decision the same day. Either way, the decision is faster than with many other loan types.
• How soon after being approved will I receive the money from the loan?
  You should receive it by direct deposit into your bank account the next business day after approval if you applied online or by phone. If you applied in a store you usually will walk out with the cash in your pocket. In most cases, you do have to have an active bank account to receive a cash advance loan.
• How long is the life of the loan?
  A cash advance loan usually has terms that require repayment after either two weeks or 30 days. This should be long enough for you to receive your next paycheck and repay what you borrowed and any applicable fees.
• Is there an interest rate with a cash advance loan?
  Each payday lender charges different fee amount per the amount of the loan. Be an informed consumer and find out the fee schedule before you apply or walk into a payday store. With so many lenders either online and or with store-fronts, knowing the fee schedule can save you money on your next loan.
• Will there be a credit check for approval purposes?
  Not always. Sometimes the major credit bureau reports aren't checked but instead a risk assessment service is used. Certain lenders may not look for a good credit rating and may offer a loan to those with poor or fair credit for a slightly higher fee.
• What if I can't pay back the loan as fast as I agreed to?
  If you can't repay the loan in the agreed-on time, you may apply for an extension of the loan (if this option is available in your state). Some cash advance loans may be eligible for extension until your next payday or for a short time frame. If this happens, you will usually need to pay the fee that is owed on the current loan and then take out a new loan for the same amount. This does not mean you take out more money but instead sign a new agreement for the same amount plus the fee.

There are many great things about using a cash advance loan. Taking the time to learn as much as you can before you decide whether or not to apply for one will help with the timing of the loan, the terms, and understanding what to expect.