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Cash Advance Definition and Types of Cash Advance Lenders

Cash Advance Definition
You may have heard about cash advances, but still wonder what exactly the term means. A cash advance definition can vary from company to company, because cash advances cater to a lot of different financial needs.

A cash advance is a fast loan, and it is also usually known as a payday loan because most loans like these are designed to be repayable after two weeks, or whenever you get your next paycheck. Given the nature of the loan, it usually ends up with a high interest rate.

Types of cash advance lenders

There are several types of cash advance lenders, as already mentioned above. They can be personal lenders, online lenders, credit card lenders, or phone lenders. These can vary if they are 14-day payday loans, 30-day cash advance loans, or credit card loans.

The basics for cash advance lenders are basically the same, only varying per state, depending on the policies governed there. In turn, they come with different cash advance definitions. With this said, here are some of the most common types of cash advance lenders for individuals looking for a loan:

  • Personal lenders. As the name would imply, these are the types of cash advance lenders that you would find with shops open in several parts of town, and they can cater to your loan needs personally.

Cash advance definition: For personal cash advance lenders, their interest rates and terms of payments can be negotiated, depending on your type of need and the amount that you are borrowing. They mostly have their own terms and conditions when it comes to paying, and if you cannot comply to their terms, they can bend a few rules to meet your need. However, deadlines are deadlines, so once you agree on a certain interest, amount, and date of payment, you should be able to comply to avoid penalty fees.

  • Online lenders. Online lenders are the type of payday loan lenders whose transactions you have to do online. They have different policies, and sometimes it is difficult to tell if some of them are scams or not. However, they are a very convenient type of cash advance lender because they are quick and easy to find and apply for.

Cash advance definition: Online cash advance lenders pride themselves in being able to lend money as fast as 12 hours or less at minimum interest rates. Unlike personal cash advance lenders, these types of lenders deposit the money to your bank account without the hassle of filling paperwork.

  • Cash advance by phone. Phone cash advance lenders are one of the most convenient forms of lenders because you can just dial them up to place the loan that you need. You can be anywhere in the country, but so long as you have the necessary information that they need, they will be able to wire the money to your bank account in an instant.

Cash advance definition: Like online lenders, they can wire the money to your account after securing the basic information that they need. It is very ideal for emergency financial needs, like hospital payments or other similar expenses that require money on hand. They have different, and sometimes higher, interest rates and payment policies, so you may want to look up the specifics for this type of cash advance lender to make sure of how you will be able to repay them.

  • Cash advance by credit card. Credit cards are handy little plastic cards from where you can get extra funds when you need to. You can also use it to have money on hand when you need payments that require cash instead of paying through credit.

Credit Card Companies
Cash advance definition: Unlike ordinary cash advance loans, credit card companies have a different definition for cash advances, and for them it means using your credit card for actual money instead of just an electronic debt. This incurs an interest rate much higher than usual interest rates from an ordinary payday loan.

The down side of credit card interest rate for cash advance is that you cannot pay off the debt unless you have cleared your outstanding balance. You have to have your bills processed until the full payment before you can deal with the cash advance interest rate for your credit card. It is best advised not to use your credit card for cash advances, especially if you have a bad credit record that needs fixing. Otherwise your interest rate for the advance will only get bigger before you can even get to it for payment.

As much as applying for any type of cash advance will assist you in your immediate financial dilemma, it is by no means a permanent solution to any debts incurred. A loan is a loan, and it will always need paying off. No matter the type of cash advance loan, there will always be a high interest rate that you will have to pay off.

A cash advance definition may vary from different companies of cash advance lenders and it would be wise for you to be able to do your research on the type of cash advance that you need. Cash advance lenders can be particular about who they want to lend money to.

Sometimes, people with bad credit are not allowed to loan any money because they are not expected to be able to effectively repay the debt. If you have a good credit record, you have a better chance of getting a loan, no matter the type of loan.

So despite the variety of loans you can obtain to help you with your financial goals, you must always carefully take into consideration which cash advance definition best suits you.

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