Cash advance loans are short term financial solutions to get quick cash for urgent needs. They are offered as online payday loans or payday loans online so the application process is convenient. With a cash advance online you can apply online and get funded if approved. The loan approval process is a soft credit check and many lenders offer same day deposit for approved loan requests.

Features

• Fast Funding. One of the key features of cash advance loans especially with an online payday loan is to get fast cash for financial emergencies. These loans offer instant funding often with same day deposit for approved loan requests so it’s perfect for urgent expenses.

• Easy Online Application. Cash advance loans have a simple online application process. Many online lenders and direct payday lenders offer online loans so you can apply online and get quick loan decisions without the need for lots of paperwork.

• Available with Bad Credit. Unlike credit union loans cash advance loans are available to borrowers with bad credit. These loans do a soft credit check not a hard pull by major credit bureaus so it’s easier for those with low credit scores to qualify.

• Short Term Loan. Payday advances are short term loans with loan terms often requiring payment by next paycheck. This is perfect for financial emergencies but be aware of the repayment schedule and late fees.

Pros and Cons

Pros

1. Fast Access. Cash advance loans especially those from the best online payday loans give you fast access to cash. Direct payday lenders offer same day deposit so you can withdraw cash to address financial emergencies.

2. Easy Application. Online loan application process is simple and quick. Many online lenders let you submit a loan request without lots of paperwork so you get quick loan decision and fast funding.

3. Available with Bad Credit. Cash advance loans are available to borrowers with bad credit. Unlike traditional personal loans from credit unions that require high credit scores, these loans do a soft credit check so it’s available even to those with bad credit.

Cons

1. High Additional Fees and Hidden Fees. One of the downsides is the high additional fees and hidden fees that comes with cash advance loans. These fees can add up to the cost of borrowing making it more expensive than other loans.

2. Short Loan Term and High Interest Rates. Cash advance loans have very short loan terms requiring payment by next paycheck. The combination of short repayment period and high interest rates can be financial strain if not managed well.

3. Debt Cycle. Because of the ease of getting small dollar loans and the potential high fees and interest rates, borrowers might find themselves in a debt cycle. Taking out new loans to pay off old ones can lead to debt accumulation and financial instability.

How to Apply for a Cash Advance Loan?

1. Choose A Payday Lender. Pick a payday lender, online or physical location, that complies with state laws and federal regulations.

2. Prepare Required Documents. Gather the required documents such as pay stub, social security number, bank account information and proof of income.

3. Fill Out The Application. Fill up the payday loan application form with personal details, employment information and loan amount requested. Submit online or in person.

4. Review The Payday Loan Agreement. Review the payday loan agreement carefully, pay attention to interest rates, fees, repayment terms and due date.

5. Get Loan Proceeds. Once approved, get the loan proceeds directly to your bank account or prepaid card account, usually same business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan, most payday lenders only require that borrowers:

1. Age. Applicants must be at least the age of majority, which is 18 in most states, although some states require borrowers to be 19 or 21 years old.

2. Active Checking Account. A valid and active bank account for deposit of loan proceeds and for the lender to withdraw repayments.

3. Proof Of Income. Borrowers need to show proof of regular income, such as pay stubs, to show they can repay the loan.

4. Valid ID. Borrowers must present valid ID, which includes social security number, to verify identity.

How to Get the Money

1. Direct Deposit. The most common way is direct deposit to your bank account. Once your payday loan application is approved, the payday lender will deposit the loan proceeds directly to your active checking account, usually same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount to a prepaid card account. This is convenient for those who don’t want to use their bank account.

3. Cash. In some cases, especially with in-person payday lenders, you can get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders may give you a check for the loan amount which you can cash or deposit to your bank account.

Payday Loan Rates

Payday loan rates usually involve fees ranging from $10 to $30 per $100 borrowed depending on state laws and borrowing limits. Typical fee is $15 per $100 borrowed which translates to an annual percentage rate (APR) of 400% for a 2 week loan. For example, if you borrow $300, you’ll need to pay back around $345 by next payday. These rates are much higher than other types of loans such as personal loans or secured personal loans.

Payday lending is allowed in 37 states, 11 states including Connecticut, Maryland and New York have strict regulations or interest rate caps that limit or prohibit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often at 36% APR, to curb high-cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently enacted such caps, part of the growing trend to regulate payday loan rates.

Highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). Lowest rates are in states like Oregon (140%), Maine (228%) and Iowa (247%). Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend repayment terms to prevent debt traps.

Cash Advance Loans. Apply Online

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