Who Traditional Lenders Work For
Traditional lending institutions are fine for many borrowers in certain situations. Borrowers with excellent credit scores, unblemished credit reports a spotless employment record and a sizable down payment are welcome at conventional lending establishments. These borrowers usually go to traditional banks for long term loans like home mortgages and automotive loans. These types of loans require a lot of paperwork and approval takes a fair amount of time as the bank investigates the borrower’s credit while working through its own bureaucracy. If you have great credit, no employment issues, a big down payment and time to wait patiently for a loan, traditional lenders are for you.
Who Traditional Lenders Don’t Work For
Consider your credit, your employment situation, the status of your current cash on hand and the financial need that brings you to a lender in the first place. Do you have a very high credit score? If you have a job right now, is your salary high enough to impress the bank? What about your down payment? Also, do you have a few days, a week or a month to wait for a loan? If you need cash right now, have employment trouble, a credit report with some issues, little to no down payment or all of the above, fast cash advance loans may be a better option for you.
What are Cash Advance Payday Loans?
Fast cash loans are loans specifically designed to help a certain type of borrower. Conventional banks and other lending institutions will turn away borrowers at the first sign of trouble in order to mitigate their risk. They are in the business of offering loans to low risk lenders. They take less profit on these loans because they make their money by dealing in volume to safe borrowers. Cash advance lenders do things differently. They cover the portion of the borrowing population not served by traditional banks by offering instant cash advance loans to all borrowers. With this type of loan, the borrower is given a smaller short term loan and agrees to repay with fees at a set date, usually on the next payday.
Unlike banks, lenders who supply cash in advance with this type of loan don’t make their money through interest. Since payday cash advance loans usually only have a term of a week or two, it’s impossible to make much money at all through compounding interest. Instead, these loan companies profit from fees charged on the loan that are paid, with the principal, on payday or through installments if those types of arrangements are made.
What Are the Advantages of Payday Cash Advance Loans?
The very first advantage of payday cash advance loans is that they are fast. Lenders can typically approve these loans and give cash to borrowers within an hour. They can do this because of the next advantage: there is no credit check. Cash advance loan companies typically do not check credit scores, credit records or employment history. This saves so much time and also heavily benefits borrowers who may have had credit or employment trouble in the past. Everybody has a need for emergency cash sometime. It’s not fair to deny someone because of employment or credit issues.
What are Some of the Major Payday Cash Advance Loan Companies?
There are many payday fast cash loan companies who offer loans from traditional bricks and mortar locations and on the Internet who hand out convenient online cash advance loans to needy borrowers. These companies include, but certainly are not limited to, Magnum Cash Advance, Cash Advance USA and First Cash Advance. Different cash advance loan brokers have their own specific loan products, terms and policies, so it’s worth investigating as many as you can. Borrowers who do their research will be able to find a cash advance lender whose loans best work for their specific needs.
Who Should Apply for a Payday Cash Advance Loan?
Some might think that payday cash advance loan products are only for a certain type of borrower. They think cash advance loans are only for borrowers with financial troubles, bad credit, no job and any other negative aspect they can think of. This is incorrect. Everyone has a need for fast emergency cash at some point or another. Bills might arrive that are higher than usual or there might be a family emergency. Small business owners, for example, get cash advance loans all the time. Merchant cash advance loans offer small business a way to compete when money is tight by giving entrepreneurs an emergency business cash advance in those tough situations when urgent funds are needed right away. Payday cash advance loans aren’t just for borrowers who can’t properly manage their money or are down on their luck. They are for anyone who runs into a tight situation, needs money fast and doesn’t have time to wait for the bureaucracy of traditional banks.