The service provided by most of the credit card issuers and charge card issuers is known as Cash Advances. The Cash Advances services allow the customer to withdraw money from an ATM machine or over a counter at the bank or other financial agency but only up to a certain limit. These types of services are of great use to the person in need as there can be anytime need of money. One of the best benefits of these services is usage of ATM machines, as these machines are working 24 hours a day so one can withdraw money anytime.
One of the main reasons why Cash Advances scheme was introduced because of the need of urgency of money at odd time. Hence to bail out people from this difficulty this scheme was introduced so that one can withdraw money anytime at will but only up to a certain limit. Some of the people are well equipped to deal with the situations of being low on money but many are not that’s where Cash Advances come in handy. This scheme if used wisely can put an end to financial difficulties experienced by that person. These schemes offer less amount of money as the due date offered for the repayment is also less about two to three weeks.
The salient features of Cash Advances are that there are no credit checks, no faxing of important documents, no co-maker policy and no collateral. The loan will be approved in just few hours. The loan amount is then directly deposited into the borrower’s bank account. The repayment due date is often coincided with the borrowers next payday i.e. 2 weeks. However the time limit can be extended to a month if the borrower has agreed to pay on monthly basis. To make full use of the loan the borrower must be well employed and receiving regular benefits. Cash Advances are meant to solve financial problems when the need is urgent however it isn’t a permanent solution to your financial problem.
The rate of interest on these loans are generally high than as compared to regular or secured loans. It gets even higher when the borrower is unable to pay the loan back on the due date. Therefore borrowers must do a detailed research and must look into each and every perspective of Cash Advances before applying for a loan. According to critics these schemes are not good as they throw long term financial plans off balance. The truth is that these schemes are designed for emergencies like for a bounced check, immediate payment of fees, etc hence must be used when there are no alternatives left.
The huge amount of interest levied by the money lenders are justified as even they take a huge amount of risk while giving money. A wise borrower must use the money smartly and carefully to get rid of financial losses and also set a platform for future benefits.
Author Resource:
Josh Ross is the author of this article on Payday loans .
Find more information about Payday loan here.
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