lender offering cash advance loans online
By: rkapur
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Online Cash Advance Loans: How They Work

Online cash advance loans seem like great alternatives if you need money fast. But are they really a good option?

In this post, we’ll tell you all about these small-dollar loans. What are the different types of cash advances, how can you apply, and how much do they cost?

Apply for a more affordable loan!

 

stack of dollars on a blue background

What Is A Cash Advance Loan?

Essentially, a cash advance loan is a short-term loan. They are a quick and convenient way to raise money.

These loans are usually for small amounts, and the cash is typically available after a simple approval process.

It’s pretty easy to qualify for them, and they’re typically funded on the same business day or even within an hour or two of making the online application.

The problem is that they tend to be very expensive.

You can find an online cash advance loan from direct lenders and marketplaces.

Now let’s see what makes these loans unique.

#DidYouKnow
Many lenders offer this type of financing.

Cash Advance Loan Features

Speed and ease of approval are the hallmarks of fast cash advances. Several lenders can instantly advance cash thanks to their quick processes.

Another critical feature of these loans is that these are short-term loans, with some cash advance loans being repayable in as little as two weeks.

#CaminoTip
If you want to make repayments over a longer period, installment loans could be a better choice, though, as you make payments over several months.

These loans are so popular because many lenders don’t review a person’s credit score. Because of this, you might find them advertised as “Cash advance loans online with no credit check.”

There’s one last thing that you should know about these loans. Most cash advances carry very high-interest costs or fees.

You could end up in bad debt if you can’t manage a cash advance correctly.

A More Affordable Alternative To Cash Advance Loans Online

Individuals looking for cash could turn to more affordable options. Camino Financial’s Solopreneur Loan is a great example.

We are an online lender committed to catalyzing economic growth in low-to-moderate income communities. Our motto, No Business Left Behind, guides our lending policies.

We have developed the Solopreneur Loan that offers $1,500 to $7,500. And you can receive the funds in as little as 2 days.

Apply for a loan with Camino Financial, and you could have the funds you need within a few days.

Get Approved For A Loan Today

Types Of Cash Advance Loans

Here’s a brief description of the three broad categories of cash advances:

dollar sign

Cash Advance Loans

“Cash advance” is a broad term that includes several types of loans offered by banks and other financial institutions. They are very short-term loans: they are usually repaid in a month and help individuals meet their short-term financial needs.

Some lenders offer to advance cash instantly.

money coming out of computer

Payday Cash Advance Loans

People often use the term cash advance when talking about payday loans, but they are not necessarily the same. Instead, payday loans are a subcategory of cash advances.

The fees you incur for payday loans can equate to an annual percentage rate (APR) of 400%.

There are many Cash Advance Payday Loans online, and most of them estimate the amount they lend depending on your income and will ask you to pay as soon as your paycheck arrives (your next payday, hence the name).

credit cards

Credit Card Cash Advances

Many credit cards offer a cash advance feature. Cardholders can use 20% or 30% of their limit to withdraw cash from an ATM. Some card issuers provide a higher limit of 50%.

People who need money quickly find that it’s even easier than applying for an online loan and waiting for their applications to be processed.

According to Forbes, interest costs can range from 17.99% to 29.99% APR. You usually have to contend with a flat up-front fee as well, which could be an amount of $5 to $12 or 3% to 8%.

two hands holding money

Employer Cash Advances

As the name implies, an employer provides these advances to help workers tide over their short-term financial needs.

An employee usually needs to make a written application stating that they require money for a financial emergency or some other urgent purpose.

Then, employers typically deduct the sum advanced from the next paycheck.

An employee cash advance could be the best way of raising short-term funds for your personal needs. Typically, companies don’t charge any interest or fees, and even if they do, you won’t pay much in dollar terms.

#DidYouKnow
Some fintech lenders offer payroll advances, which are also called earned-wage advances or early-wage advances. According to the NY Times, some of these new pay-advance apps can have APRs as high as 365%.

stack of dollar bills

Other Types of Cash Advances

  • Tax return advance: You can also find tax return cash advances (or tax refund loans), which are loans that can advance you a percentage of the tax refund the IRS will give you.
  • Merchant cash advance: These types of loans are specifically for businesses—MCAs advance money based on the business’s credit card sales.

Cash Advance Loans Online—A Comparison

Here’s a table that summarizes the features of different personal cash advance options and Camino Financial’s Solopreneur Loan.

LenderAnnual percentage rate (APR)FeesThe amount that you can borrowOther details
Camino Financial Solopreneur Loan33% to 35%No prepayment fees.$1,500 to $7,500We offer minimal requirements and a fast loan
Payday loansAs high as 400%Included in APRA few hundred dollarsIf you can’t repay, some lenders allow you to roll over the loan
Credit card cash advances17.99% to 29.99%$5 to $12 or 3 percent to 8 percent. Not included in APRUsually, 20% to 30% of your card limitNo application is needed. You can get the money from an ATM or bank branch
Employee cash advancesIt could be interest-free. But if it is from a pay advance app, it could be as high as 365%Included in APRA few hundred dollars—it’s based on your salaryRepaid from subsequent paycheck(s)
Get A Solopreneur Loan

Pros And Cons Of Cash Advances

Raising money from cash advance loans online comes with its pros and cons.

Pros

  • It’s one of the fastest ways to raise cash
  • Many cash advance loans online from direct lenders don’t require a credit check
  • The application process is usually simple and uncomplicated
  • It’s a short term loan, so you don’t have to make payments for an extended period

Cons

  • These loans can be very costly
  • They are not a long term financial solution
  • Repaying certain fast cash advances, especially payday loans, on time may not help you build your credit score
  • There’s no grace period when you take a credit card cash advance: they charge interest from the first day
  • They might have hidden fees

woman searching for cash advance loans online

When Should You Get A Cash Advance Loan?

In an earlier section of this post, we explained that if you take cash advance loans online or visit a payday loan store to borrow money, interest costs and fees can be high.

Therefore, in normal circumstances, cash advances are best avoided.

In certain situations, it may make sense to take cash advances or your credit card’s advance feature.

Say you’re in dire need of money. But, unfortunately, you’ve no cash, a bad credit score, and you’ve already maxed out your credit limits on your cards.

Customers with credit difficulties should seek credit counseling, but a credit counselor won’t be that much help if you have an immediate need for cash.

A payday loan company could be your only source of quick cash in this situation. However, a payday loan should be a last resort. Don’t think of these loans as long-term financial solutions.

#CaminoTip
If you don’t have a good track record of managing your finances, be careful with these loans, as they might leave you in more debt than before.

How To Get A Cash Advance Online: Requirements

When applying for cash advance loans online, you’ll probably have to provide personal and financial details.

  • You’ll need to give some proof of your source of income
  • Particulars of your bank account
  • Your social security number and Government-issued ID
  • Your address and phone number

The lender could also ask about your current loans and repayment history.

How To Apply For A Cash Advance Online

Are you curious as to how to get one of these loans? Here are step-by-step instructions that you can follow to get one:

  1. Identify the lenders you would like to approach for cash advance loans online.
  2. Find out the requirements of each lender. For example, will they check your credit score? Does your income need to be above a specified threshold?
  3. Don’t lose heart if you can’t meet some loan approval conditions. Don’t waste time applying with lenders that can’t help you.
  4. Complete an application with the company that has the lowest APR. Don’t forget to check for additional fees that aren’t part of the APR.
  5. You might have to sign a loan agreement to receive the cash.

man in suit offering cash advances

Is A Cash Advance Loan Right For Me?

The advantage of getting cash advance loans online is how quick and easy the process is. Sometimes the requirements are so lenient that being approved is practically a given.

Plus, their short turnaround time makes them an excellent alternative for financial emergencies.

But, as you probably know already, advances are more expensive than other types of loans: they have high-interest rates and very costly fees.

Often, people who get these loans end up in a cycle of debt that can be hard to get out of.

You’re the only one that can decide if they are right for you.

Still, we wholeheartedly recommend that you analyze any other lending alternatives at your disposal before you apply for a cash advance loan online.

Alternatives To Online Cash Advance Loans

There are other lower-interest options. Here are some of them:

Personal Loans

These are installment loans that can provide quick funds with relatively little paperwork. There are plenty of lenders who offer the best personal loans.

Camino Financial’s Solopreneur Loan can be a good choice when you’re looking for a low-cost loan.

You can get up to $7,500 with minimal requirements and fast funding: you can get it as fast as 2 days!

Apply For A Personal Loan!

Auto Title Loans

As the name suggests, auto title loans, also called car title loans, provide funds to borrowers who give their car or truck title to the lender.

APRs can be as high as 300%, and if you can’t repay the loan, you could lose your vehicle.

Credit Cards

If you need capital to buy something, you could use your credit card instead of applying for a loan that’ll give you a lump sum. But the interest costs and fees can make it an uneconomical choice.

Peer-to-Peer Lenders

In this form of lending (also called P2P), borrowers receive funds directly from individuals through a peer-to-peer lending website. A little research could provide you with a quick low-interest loan.

However, borrowers usually need a good credit score to qualify.

Friends and Family

Use this option carefully. If you can’t repay, you may damage the existing relationships with your friends and family.

Savings

Digging into your savings could give you the money you need for an emergency. But we recommend you avoid using money from this source.

If you must use your savings, do your best to replace the cash as soon as possible.

happy hispanic man

The Best Way To Finance Your Needs: Camino Financial

If you need funds urgently, there are plenty of options out there. But all things considered, a loan from Camino Financial could be your best bet.

We offer flexible use of proceeds, and the application process is 100% secure.

Even better yet, we have minimal requirements:

  • SSN or ITIN
  • $1,500 in monthly income
  • An active bank account
  • You need to be current with outstanding debt

Apply for a personal loan today so that you can quickly secure the funds you need.

Apply now!

 

FAQs

What’s the difference between cash advances and payday loans?

People think they are the same thing. Some lenders even use the terms interchangeably. But there’s a difference.

A payday loan is only one of the different types of cash advances. In other words, a payday loan is a subcategory of cash advances.

Where can I get a cash advance?

There are plenty of places to get a cash advance. You can get cash advance loans online or in person.

There are many brick-and-mortar and online lenders that offer this product. If you go for a credit card cash advance, you can ask your bank or your credit card issuer.

Can I get a cash advance online?

Yes, of course. Tons of online lenders offer this type of credit.

Can you get a cash advance online with bad credit?

Yes, you can. Payday loan companies usually approve cash advance loans online with no credit check.

What do you need to get a cash advance?

Every lender has different requirements. However, most would ask for your Social Security Number and proof of your income. You would also need to have an active bank account.

Can cash advances hurt your credit score?

Not repaying your cash advance on time could hurt your credit score. In addition, the lender may send details about your delayed payments to the credit agencies.

Even if they don’t, they may sell the unpaid debt to a collection company, which could then send your data to the credit bureaus.

Can I get a cash advance loan online with no credit check?

Yes, you can because cash advance lenders usually don’t check your credit score. You can also get loans for bad credit.

Where can I borrow money ASAP?

There are many ways to get quick access to funds. The most popular is a cash advance, but they are often too expensive.

Loans are a better alternative that will not hurt your finances if used wisely.

How can I get an instant cash advance?

To get a cash advance:

  1. Find several lenders and compare their offers
  2. Select the cash advance that better fits your needs
  3. Complete an application
  4. Wait for an approval
  5. Receive the capital

What app can I borrow money from instantly?

Several apps offer payday cash advances:

  1. Payactiv
  2. Earnin
  3. Chime
  4. Brigit
  5. Current

Are there better alternatives to cash advance loans online?

There are plenty of alternatives to cash advance loans online. For example, you could opt for an auto title loan, borrow from friends and family, or register on a peer-to-peer lending website.

However, your best option is a loan. The interest rates are more reasonable, and it’s easy to qualify for one.

 

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