Cash Advances vs. Regular Loans

Many consumers are not clear on how cash advances differ from traditional loans. On this page, we'll explain the primary differences between the two types of services.

Less Rigorous Qualification Standards

As we mentioned before, our partners are able to relax their qualification requirements somewhat because the balance is secured by your paycheck. This means that the provider doesn't face the same amount of risk as a traditional lender would. Consequently, most providers just require that you are employed, earning at least $1000 per month, are at least 18 years old, are a U.S. citizen, and have an active bank account (varies accordingly). These simple qualification standards make these services generally more accessible than traditional lines of credit.

Expedited Application Process

With a loan from a bank or a credit union, the application process is usually extensive and very time-consuming. You have to fill out stacks of application materials, usually in person, and then wait for an approval decision. By contrast, most of our partners (like www.personalcashadvance.com/) offer online applications that can be completed in less than five minutes (varies by lender). As an added benefit, many also provide applicants with approval decisions within seconds after receiving your application (varies). Overall, the waiting and processing is significantly less than with other financial services.

Various Repayment Options

Of course, repayment terms and conditions will vary accordingly. Although, most providers offer very flexible terms for repayment. For example, if you cannot repay your balance on the due date, some providers give you the option of rolling the balance over. This means you extend it for extra repayment time as long as you agree to be responsible for an additional finance charge. To do this, most companies require that you take care of at least the original finance charge on the due date. You might also have the option of taking care of the finance charge and part of the principal on the due date and then extending the balance for more time.

No Collateral Required

Unless you have an immaculate financial record, most traditional lenders require you to put up some piece of property as collateral when you take out a personal loan. Our partners do not require collateral from their borrowers. When relying on short-term financial services, your paycheck serves as the collateral.