A cash advanced loan also known as payday loan is a short term personal loan, money is advance to you and you pay it back within an extended period of time. Payday loans are primarily used for last minute expenses, or unexpected bills. The majority of times people only ask for $100-500; something that can be paid back in a reasonable amount of time. Anything more that usually would need to have collateral and then it is no longer considered to be a short term loan. The plan is that this advance will hold you over until your next payday and then you pay off the loan.
In order to apply for the cash advance, you will need to provide more information that just your name and contact information. You will be asked to provide name and address of employer, pay dates, bank information social security # and names of your family and friends for references. After completing the application, cash advance direct lender confirms the details of the application in order to determine your approval or denial of the loan. If some of the details of the application cannot be verified, further documents may be required from you before receiving the loan. In some cases this can be a very fast or slow process it all depends on the situation. Once the loan is approved you will receive your money either through fund transfer, cash or check. Many companies will offer this service online you may just have to fax documents to the company. Then once the loan is approved your funds will be direct deposited.
The majority of direct pay day loans can be refinanced, if you cannot pay the full amount borrowed plus finance fees on your next pay day. For example, you borrow $200.00 and you have a finance fee of $60.00. Then instead of paying the entire $260.00 on your next pay period, you would pay $60.00 on your next pay day and then $260.00 on the following pay date if that is doable. Usually after the 4 or 5 time of just refinancing your loan, the lenders require that you pay the finance charge and put $50.00 towards your loan amount and that process is continued until your loan is fully paid off.
If you are unable to pay your cash advance within a short period of time, I would suggest finding another alternative. Since these loans don’t require collateral and are so easy to obtain, they have a usually high APR and you end up paying more money back than you received. These loans are meant to be short term and paid back quickly and not intended for long term use.