Learn Advantages and Disadvantages of Cash Advance Loans at Filld
A cash advance loan is often promoted as a financial product that might help you cover an unexpected expense. Even though it turns out to be a saving grace for many people, it is actually a risky affair that might keep you in a debt circle for a while.
When you consider borrowing money from lenders Filld.com, you should be mindful of how this can affect your credit report. Below, you can see the most obvious positive and negative things to know about cash advances.
Advantages of Cash Advance
Easy application and approval
Cash advances are easy to get. You don’t even have to leave the comfort of your home. The application, approval, and funding can be done online. If all goes well, you may get the requested amount of money within 24 hours.
Apart from being easy to get, cash advances are also fast to get. From the moment you submit an application till the moment of actual funding, it takes up to 24 hours. Oftentimes, it takes just a few hours.
Requirements for cash advances are quite limited. It’s enough for you to be 18 years of age, and be able to provide your SSN, ID card, and proof of income. Even your credit score isn’t checked before loan approval.
No hard credit check
You don’t need a good credit score to be eligible for a cash advance service. Online lenders won’t check your credit report as long as you can prove your financial capabilities.
Compared to an auto loan or mortgage Loans Bad Credit USA , you don’t have to put your belongings at stake Filld.com. This is an unsecured type of loan, which just want you to have a stable income every month. No collateral means that you don’t have to put your car, home, or jewelry at stake.
Disadvantages of Cash Advance
High interest rates
Depending on your state and lender, you may have different terms and conditions to stick to. The main difference is related to interest rates. Sometimes, they end up costing you over six times the amount you borrowed.
Short repayment period
The loans like auto loans and mortgages have longer repayment periods. Cash advances come up with four weeks for repayment. This isn’t always enough for paying off. Some borrowers simply exaggerate their financial capabilities by using this type of loan product.
High possibility of getting trapped in the debt cycle
When you can’t pay back the loan all at once, you are basically forced to roll over the loan to the next repayment date. Once this happens, the lender can charge higher interest fees as a penalty and keep you in debt at Filld. If you fail to cover your debt within two months, you will see your balance handed to a collection agency.
No positive effect on credit
Compared to other types of loans, cash advances can’t improve your credit score. Even if you make full repayment on time, the impact on your credit record won’t be there.
A cash advance is usually charged from your bank account automatically. You give your consent for this to happen when signing a loan agreement. Some online lenders try to take the loan amount from your account without your permission. This is still possible as they have access to your bank account to deposit the money at the very beginning.
Is a Cash Advance Worth It?
Cash advance loans shouldn’t be viewed as an automatic solution to every financial crisis in your life. They hide a lot of disadvantages which should make you think about their convenience before applying. If you find a cash advance as the only option, you should focus on the advantageous. Make sure to use this lending service responsibly. Eventually, you can make it work for your specific situation.