Saturday, February 15, 2014

Cash Advances - Easy Money?

You've probably seen the ad slogans from many cash advance companies - "Get up to $500 before your next payday!" "Get up to $1,000 within minutes!" "No faxes or credit checks necessary!" Going beyond the slogans, obtaining a cash advance is often a very simple process.

The requirements for obtaining a cash advance are far less strict than with traditional financial institutions that provide consumer loans. For starters, your current credit score is insignificant to companies. These lenders don't bother to check your credit since many lenders already assume you have bad credit.

If you have bad credit you'll be considered to have a subprime credit rating. As a subprime borrower you're only likely to be approved for credit with very high interest rates, which is exactly what a cash advance is.

If you need a cash advance, the company you deal with may use the TeleTrack credit reporting service to see if you have any outstanding debts from other subprime lenders. A credit check processed through TeleTrack will not be recorded by any of the three national credit bureaus and will not lower your existing credit score.

If you pass the TeleTrack credit check, qualifying for a cash advance is usually quite easy if you're employed and have regular income. Many companies will also require you to earn a minimum income of around $1,000 a month and have a checking account in your name.

Traditionally, cash advance companies required you to mail or fax in a blank check, most recent bank statement and your most recent pay stub from your employer. To prevent fraud, many of these companies also required a copy of your driver's license and telephone bill.

Today, with many companies going online, you can find out if you're approved in a matter of minutes. Many lenders now contact your employer by phone to verify your employment information. Lenders are very discrete so you don't have to worry about your employer finding out about your need.

Once approved, all you usually need to do is provide a valid checking account number as well as a routing number to have funds transferred into your account within an hour of approval. If your loan is approved after your bank's business hours the funds should be transferred no later than the next business day.

If you're ever in a desperate cash crunch, a cash advance can get you the money you need fast and easy. If you ever need to pay for sudden auto repairs or some other emergency you didn't budget for you'll definitely appreciate it.

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