Cash advances
are small loans that are lent out for a small time period. Generally speaking,
the loan limit on these loans are $1500. Many of the loan companies that give
these types of loans will not run a credit check so this makes it easy for
those with bad credit to obtain a short term loan.
These loan
lenders are known as payday loans. Payday loan companies are privately owned
shops and are usually owned by banks, but other institutions often own these
companies as well. Pawn shops also offer a similar service and will give loans
with collateral. If the loan is not paid back by a certain date, the pawn shop
will keep the collateral. To keep the risk down, pawn shops usually require
that the collateral be worth substantially more than the loan amount.
The demographic
that fits this type of loan are generally employed people with a life emergency
that requires quick money. The people who obtain these loans are usually able
to pay them in full in a short period of time.
The loans are
usually given in cash and are given in return for a post-dated check in the
amount of the loan plus interest. The loan is paid back when the lender cashes
the check. The check is generally cashed on the date the loan is due so that
the lender can retrieve the money they lent out quickly. It is the
responsibility of the borrower to make sure the money to cover the loan is in
their bank account by the date the lender will be cashing the check.
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