A same day cash advance is a type of loan. Also called cash advances or payday loans, these types of loans are intended to offer borrowers a way to borrow money they need quickly. However, they are different from other types of loans in that they are due in a short period of time. For example, they are often due on the borrower’s next scheduled pay date. Additionally, they allow the borrower to get the money he needs either on the same day he applies for it or on the next day, often through direct deposit.
There are many lenders that offer this type of loan online. They are typically referred to as cash advance or payday loan companies. Typically, a person can apply for a cash advance loan online and fax important loan documents to the lending company. There are also some brick-and-mortar cash advance companies that require potential borrowers to visit an office and apply for a loan.
Traditional lending companies have certain criteria for approving loan applications. In most cases, an applicant must have good credit and references in order to be approved for a loan. Sometimes traditional lenders also require a borrower to have collateral. In lieu of good credit, an applicant may obtain a cosigner in order to make himself a more attractive applicant; the cosigner’s good credit may help to push an otherwise shaky application through. Traditional loans may take a longer time to process, and most do not offer same-day or even next-day funding.
Lending companies that offer same day cash advance loans are entirely different in that they don’t usually require a borrower to have good credit. In fact, most even approve applications for those with bankruptcies and multiple charge offs. Unusually, they don’t check the borrower’s credit at all. However, this doesn’t mean they have no requirements for application approval. They simply set different criteria.
Most same day cash advance companies require borrowers to have proof of employment or proof that they receive regular income. Many require the borrower to have a checking account, though some will accept savings accounts as well, especially if the borrower’s paycheck is regularly deposited there. Some cash advance lenders also set age requirement. For example, most require borrowers to be at least 18 years old. It is also common for these lenders to set monthly income requirements.
Same day cash advance lenders are often criticized for the way they do business. Since they typically set very high interest rates and automatically withdraw repayment from the borrower’s bank account, opponents of these lenders say they set borrowers up for even worse financial problems. They cite the fact that many who seek these loans have very low incomes or poor credit. As such, they are often at great financial risk when attempting to repay loans with such high fees and short loan periods.
