A cash advance loan, also often referred to as a payday loan, is a short term loan that is designed to give you extra money until your next paycheck. These types of loans can be useful for dealing with unexpected emergencies such as your car breaking down, an appliance suddenly not working or an unexpected trip out of town due to a family emergency.
Unlike traditional loans that generally require a lot of documentation, qualifying for a payday loan is typically fairly easy. In most cases you just have to present a photo ID and a copy of your latest pay stub to prove that you can pay back the loan.
The amount of loan that you qualify for will depend on how much money you make. Usually the higher your weekly take-home pay, the larger loan you can get. However, just because you qualify for a larger loan doesn’t necessarily mean that you should take one.
Payday loans tends to carry very high interest rates and fees when compared to other more traditional loans. Because of this, they should only be used for emergencies. Additionally, you should try to pay them back as quickly as possible, and never borrow more than you actually need. This will help minimize the amount of money you have to pay in fees and interest over the life of the loan.
As long as they are used responsibly, cash advance loans can be a good way to get money when you need it. Just be sure to borrow only what you need and pay it back as soon as you can. Otherwise you can get trapped in a vicious cycle of debt where you have to keep borrowing money to pay off your existing loans. Finally, be sure that you read any fine print on the contract before you sign for the loan so you know exactly what it is that you are agreeing to.