A fast cash advance refers to a payday loan or other type of short-term, high-interest loan made to someone who urgently needs a relatively small amount of money, usually between $100 U.S. Dollars (USD) and $2,500 USD. There are many companies, operating on the internet as well as out of brick-and-mortar locations, who offer payday loans. In a typical situation where a fast cash advance is needed, a person will take the loan for a short period of time, and pay it back with money from his next paycheck. The process of getting a fast cash advance is quite simple, and usually consists of filling out an application, getting approved, signing a contract acknowledging payment terms, and obtaining the funds, whether by direct deposit or in cash at a physical location.
The most common type of fast cash advance is a payday loan. Most borrowers are approved quickly when they apply for a payday loan. Many payday lenders simply require proof of employment or other reliable, recurring income. A contract is then drawn up, under the guidelines of the Truth in Lending Act (TILA). According to TILA, a payday loan contract must explicitly state important terms of the agreement, such as interest rates and all fees involved.
If the application and contract are completed online, the funds are deposited directly into a designated checking account, and are available the next business day. If the loan is approved in a store, the money is made available immediately to the borrower. In this case, the borrower must provide the lender with a check for the full repayment amount, post-dated to when the debt falls due. Usually this is around the time that the borrower receives his next paycheck.
Another common type of fast cash advance is the title loan. In this situation, a person will borrow money based on the equity they have in a vehicle such as a car. Title loans are best suited to those who need to quickly borrow a larger amount of money, usually between $500 USD and $50,000 USD. These are obtained by taking the vehicle to the lender’s location, and having the vehicle inspected.
Based on the vehicle’s condition, its market value, and any money the owner still owes on it, the lender will decide how much money may be borrowed against the vehicle’s legal title of ownership. It is usually necessary for a borrower to fill out an application, where factors such as employment, insurance, and age are considered. When applying for any type of fast cash advance, it is important to consider all the risks and costs involved. A fast cash advance is debt, and it can often carry high rates of interest, which may prolong the time it will take to pay the debt back.