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Are you considering using a cash advance company in California? Cash advance companies are also known by many other names, including express cash companies, payday loan lenders, and no-credit, bad-credit lending programs. Basically, these companies loan small amounts of cash to individuals who are in a tight financial situation and need money before they get paid. If you’re considering using one of these services, it’s important that you understand exactly how they work so you don’t end up in a greater financial hole. Here are some commonly asked questions that will help you understand the cash advance process better. Do I Have to Have a Job to Qualify? You have to have some type of verifiable income; however, it doesn’t always have to be a job. For example, individuals who receive social security benefits, disability benefits, or government aid may qualify for a cash advance. Cash advance companies simply want to know that you have the financial means to pay back the loan. Will I Have to Fill Out Tons of Paperwork? Years ago if you were interested in obtaining a payday loan, you would have to visit a stone and mortar location and bring copies of pay stubs, your driver’s license, etc. Today payday loan companies still operate physical locations, but many rely on the internet to conduct business. Therefore, they do not require as much paperwork from applicants. There may be some companies that still require you to scan and email documents, but the majority will have you provide information online. Is Everyone Approved Regardless of Credit? Payday lenders look at how much you make per week to determine your eligibility. They do not pull your credit report. However, if you have multiple payday loans in a repayment status, or you’ve defaulted on past payday loans, you may not be approved. Also, keep in mind that if you default on a cash advance, the debt can be reported to credit bureaus. When Should I Use a Cash Advance? These short-term loans are designed to help out individuals with little savings or those living paycheck to paycheck who are hit with an unexpected expense. Examples of unexpected expenses could be a car repair, a hospital co-payment, or money to pay utilities or rent to avoid further collection activity. You should not use a cash advance as a way to finance a vacation, make a large purchase or any other so-called “want item.” Cash advances carry a lot of interest, so they should only be used as a last resort. If you can borrow money from a family member, work something out with a utility company, or even get a traditional line of credit to help you meet an unexpected expense, you should. Are Cash Advances Predatory There is a lot of talk in the news and online about how cash advance companies take advantage of the unfortunate situations. The facts are that the majority of the people who turn to payday lenders have poor credit or low income that disqualifies them from obtaining a traditional loan. Another fact is that these loans carry high interest rates. However, these facts, in and of themselves, do not make these loans predatory. States require that lenders disclose how much interest will be charged on the loan. They also limit the amount a payday lender can loan. It’s really up to the person seeking the advance to do their research and make a smart decision about how much money they will borrow. One last piece of advice. If you’re considering working with a cash advance company in California, never borrow more than you can afford to pay back within the given repayment period. Using payday loans responsibly will keep you out of additional financial debt.
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