Getting an instant cash advance, also known as a payday loan in some locations, is a relatively simple and straightforward process that is nearly the same no matter what company you go through. It involves an application process that will ask for some personal information, including proof of employment through paycheck stubs, and a checking account. Once completed, the instant cash advance should be readily available.
An instant cash advance is based on the same principle as writing a check for cash. Only, in this case, the company cashing the check will hold it for an agreed-upon period of time. When that period of time expires, the company is authorized to deposit the check. It often does this on the same day mentioned in the agreement.
The benefit for the company is that the instant cash advance includes fees and interest penalties. In some places, to avoid usury laws, the costs are not called interest but transaction fees. In effect, the company becomes a lender giving out short-term loans at high interest rates.
The benefit for the individual is that it means he or she gets the cash needed in a timely fashion. Once the instant cash advance has been received, the borrowers are able to do with the money as they wish with no threat of collateral claims in case of default. In some cases, where checks may bounce without a cash advance, the transaction fees may be less than any overdraft fees a bank may charge.
Some instant cash advance companies offer their services online. However, the process is as similar as it may be in going to a real store. Proof of employment and income will likely be required, but it will have to be faxed to the processing center, in many cases. The cash may be wired to your account. Often, this may incur an additional fee.
In many cases, if an individual is short on money at the designated time when the cash advance company is supposed to deposit the check, an extension may be granted. This will usually involve going back into the business and requesting the extension. If approved, you will write a new check for a higher amount, which may be referred to as interest or additional fees. The company will then return your original check to you, or shred it in your presence.
In addition to getting an instant cash advance from a company specifically dedicated to the practice, it may also be possible to get the advance from a bank where there is already a pre-existing relationship. This may be a better option if it is a service offered by your bank. Banks may charge a lower interest rate and the money is often immediately deposited into the affected account.