Long Term Cash Advance: What You Need to Know
A long term cash advance specifically caters to borrowers that are in need of a longer time period to pay their cash loan. Such a scheme really proves to be helpful to borrowers who are in a very tight financial situation.
General information on cash advances
A long term cash advance, or any cash advance, involves lending a small sum of money to borrowers, which ranges from $50 to $1,500 in total. Basically, there are two modes in getting the said quick cash. The first option is to go to retail lenders, and the second is through online lenders.
Retail lenders are available in several places, operating alongside or in collaboration with various commercial banks. The process involves personally approaching these outlets on retail lending in order to obtain personal loans. Borrowers must have with them the necessary information about their identity and occupation.
In addition, it is better if they bring statements from the bank, which are sometimes required by the cash advance lenders so as to determine the capacity of the borrowers to pay the money back. Other times, borrowers are just required to issue postdated checks that cover the loan amount in addition to the interest and service fees charged by payday loan centers.
The other way of securing said cash advance payday loan is via online. Borrowers have to fill out the application form of the online lender and forward the necessary information. Sometimes, they are required to fax important documents to verify the identity and capacity to pay of the borrowers. However, more and more online cash advance lenders do away with the faxing requirement to allow those with bad credit to apply. The good thing about this method is that less hassle is involved and the loan will be automatically credited to the debtors’ bank accounts.
The interest rates and service fees charged in cash advances are usually higher than normal. This is basically why said type of debt financing is considered as one of the most costly forms. For this reason, the payback period is usually short. Normally, the loans have to be paid in about two weeks from the day they are secured. However, such a rule does not apply to a long term cash advance where borrowers are given more time to pay the debt back.
Benefits of long term cash advance loans
Another benefit that a long term cash advance provides is that the loan is paid on an installment basis, unlike in other forms of payday loans cash advances. Such a feature really adds flexibility on how borrowers pay their debts. They are no longer constrained to pay the whole value of their loan plus the interest and other charges in one day.
In addition to this, most lending companies do recognize that their clients are really in a tight financial situation. Such clear recognition of reality enables them to extend their services to those people who have a history of bad credit, like a poor credit score, late payments, defaults, insolvency, and arrears.
Tips for securing long term cash advance loans
Before commencing securing long term cash advances, borrowers need to need to make sure that they possess the necessary qualifications, such as the age requirement, which is at least eighteen years old; the US citizenship requirement; a steady and stable income source requirement; and an active bank account requirement.
Also, borrowers need to determine if the lender they are about to go to really offers the said type of fast cash advance loan. Otherwise, they will be forced to make extensions, which entail added astronomical charges. This being the case, it is then advised that borrowers should only borrow the amount that they actually need. It is also vital that they pay once the due date comes to avoid defaulting or extending loan payments.
As to the mode of securing cash advance with a long term scheme, it is considerably safer to personally go to retail outlets. However, for those that cannot be bothered, you can opt to go with the online method. However, you should always exercise the basic safety measures when providing personal information over the Internet.
A long term cash advance can really serve as a way to solve one's immediate need for money. Not only can the loaned amount be used for multiple purposes, the borrowers are also given more flexibility on how they pay their debts due to installment scheme. More so, borrowers are given more time to pay the loans since the maximum payback period is ninety days as opposed to the two-week term used in most types of cash advance.
However, such long period can also serve to be detrimental due to the interest that accrues every passing day, most especially when borrowers still fail to pay on time. For this reason, a long term cash advance should only be obtained when it is of extreme necessity.