A cash advance loan is a common short-term, unsecured loan designed to provide quick access to funds for borrowers in need of instant emergency cash.

Types of Online Cash Advances

Online cash advances come in a few different forms of funding. There’s payday loans, cash advances, employer advances, and more. If you’re in need of a cash advance online, make sure you familiarize yourself with the following varieties:

Type

Features

Interest Rates

Payday Loan

– Short-term (usually 14-30 days) – No collateral required – Fast approval process

High – Fees and charges may apply

Title Loan

– Secured by the borrower’s vehicle title  – Higher loan amounts compared to payday loans – Fast approval process

High – Fees and charges may apply

Online Cash Advance

– Online loan application – No collateral required – Fast approval process

High – Fees and charges may apply

Installment Loan

– Longer repayment terms – Fixed monthly payments – No collateral required

– Typically lower than compared to payday loans – Fees and charges may apply

There are Real Advantages of Instant Cash

Quick Access to Funds -Processed quickly, with some cash advance lenders offering same or next day approval and funding. Many payday loans may offer this, although their terms and conditions are usually very risky.

No Credit Check – Some quick cash advances are available to borrowers with bad credit or no credit, as lenders typically do not require a credit check. This is most often found with payday loans.

No Collateral Needed – Typically unsecured, meaning they do not require collateral. Cash advance lenders offer unsecured loans based on the borrower’s promise to repay the money. 

Eligibility Requirements for an Online Cash Advance

  • Borrowers must be at least 18 years old and be a U.S. citizen or permanent resident.
  • Borrowers must have a steady source of income, either through employment or another verifiable source.
  • Borrowers must have an active checking account in good standing.

Instant Cash Advance Application Process

  • Instant advance loans can be applied for online or in person with a storefront lender.
  • Borrowers must provide proof of income, a valid government-issued I.D., and bank account information to get instant cash online.
  • After submitting the required documentation for an instant cash advance, lenders will review the application and may approve the advance loan within a few minutes to a few hours.

Typical Repayment Terms

  • For payday loans, the money is usually repaid in a lump sum on the borrower’s next payday.
  • Cash advance repayment is typically done with a post-dated check or an automatic withdrawal from the borrower’s bank account.
  • If cash advance borrowers are unable to repay the money on time, they may face late payment penalties and additional fees. Many payday loans will offer the borrower a chance to rollover their loan. But this leads to more fees and interest. 

Regulations and Restrictions State and Federal Laws

All cash advance loans are regulated by state and federal laws, with some states banning them altogether. 

**The Consumer Financial Protection Bureau (CFPB) is involved in regulating and protecting consumers from predatory lending practices.**

Some states impose restrictions on maximum loan amounts and fees

For example, 

  1. California:
    • Maximum amount: $300
    • Maximum finance charge: 15% of the total amount
    • Maximum APR: 460% (based on a 14-day loan term)
  2. Florida:
    • Maximum amount: $500
    • Maximum finance charge: 10% of the total amount + a $5 verification fee
    • Maximum APR: 304% (based on a 14-day loan term)
  3. Texas:
    • Maximum amount: Not specified, but most lenders offer up to $1,000
    • Maximum APR: 662% (based on a 14-day loan term)
  4. Illinois:
    • Maximum amount: $1,000 or 25% of the borrower’s gross monthly income, whichever is less
    • Maximum finance charge: $15.50 per $100 borrowed
    • Maximum APR: 404% (based on a 14-day loan term)
  5. Ohio:
    • Maximum amount: $1,000
    • Maximum finance charge: 28% of the loan amount
    • Maximum APR: 28% (based on a 14-day loan term)
 

At the time of publishing this information, it was up to date. We understand that rules and regulations regarding instant cash options can change quickly, so it is important to check with the NCSL database regularly.

Cash Advance Loan FAQ

A cash advance is a financial tool that provides borrowers with an instant short-term loan that is usually repaid in a lump sum on the borrower’s next payday. They’re usually referred to as payday loans, and they tend to come with extremely high rates and unreasonable terms. 

The interest rate and annual percentage rate of an online advance is typically higher than those of traditional loans. Fees may also be charged for processing the cash advance loan, and late payment penalties can apply if the borrower is unable to repay on time. Make sure you know the interest rate for your online advance loan. 

The amount of money that can be borrowed through an advance loan is usually limited to a few hundred dollars, although some payday lenders may offer larger cash amounts.

Repayment of an advance is typically done with a post-dated check or an automatic withdrawal from the borrower’s bank account on the borrower’s next paycheck. It’s in your best interest to opt-in for overdraft protection if payment is automatic to avoid an NSF fee.

Generally speaking, once approved, instant payday loans are deposited into your bank account within 1-2 business days. This time frame may vary depending on the quick cash lender and your specific bank. Some lenders may offer same-day funding options for an additional fee.

An instant cash advance can be obtained as online loans or in-person. It is important to compare fast cash lenders and choose one that offers the most favorable terms and conditions, whether it’s a cash advance online or in person. 

Restrictions on who can apply for an instant cash advance vary depending on state and federal regulations. Generally, borrowers must be at least 18 years old, have a steady source of income, and have an active checking account to get cash instantly.

Late repayment can lead to additional fees, known as late fees, being added to your loan balance. These details should be in your loan agreement. These fees vary by lender and state regulations, but they can be quite costly. Additionally, late payment may be reported to major credit bureaus and can negatively impact your credit score, making it more difficult to obtain instant credit in the future. 

Annual Percentage Rate (APR) represents the annual cost of borrowing money, including finance charges and any additional fees, expressed as a percentage. APR allows borrowers to compare different loan offers more easily. Any personal loans, credit cards, or other financial products will have an APR associated with them. 

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