A cash advance is a short-term loan that can help you with unexpected expenses. It is important to keep in mind that a cash advance loan, also called a payday loan, is appropriate for emergency situations only. Some of the things that people use cash advance loans for include urgent dental treatment, repairing their car so they can get to work and paying past-due bills. Although payday loan lenders do not place restrictions on how you can spend the money, most experts agree there are some things you shouldn’t buy with a payday loan.
Typical Requirements Needed to Obtain a Cash Advance Loan
- You must be at least 18 years old to apply for a cash advance loan.
- You are required to be a legal citizen of the United States.
- You must provide a working telephone number to the cash advance loan company.
- Most lenders require you to be employed and to earn a pre-determined minimum monthly salary. $1,000 per month is a common figure.
- If you are not employed, you must prove that you have a reliable source of income over the minimum monthly amount.
- You are required to have an established checking or savings account in good standing. The majority of payday lenders receive your loan repayment through direct debit of your bank account. Some lenders will decline applicants who don’t have direct deposit while others allow you to write a post-dated check.
Good credit is not required to obtain an instant cash advance, and in most cases, the payday loan lender does not even require a credit check. But, many lenders will not approve applicants who are involved in bankruptcy proceedings.
Although there’s no credit check, you can expect that your employer may be contacted to verify your employment. If you don’t want your employer called, you may be able to provide a recent pay stub as proof of employment. The lender may also check a national database to ensure that you don’t have other cash advance loans that are unpaid.
Due to federal laws governing payday loans, applicants can only receive money from a lender that does business in the state where the applicant lives. This is true even if the applicant completes an online request for a cash advance loan. There may be additional restrictions placed on your loan due to state laws. It is incumbent upon the applicant to know and understand all terms of the payday loan before signing a legally binding contract.