How to Take Advantage of Online Cash Advance Loans - PowerPoint PPT Presentation

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How to Take Advantage of Online Cash Advance Loans

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Quick, simple and available to a large number of people, cash advance loans can be good if used smartly but expensive when not thought out well. – PowerPoint PPT presentation

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Date added: 15 July 2020
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Title: How to Take Advantage of Online Cash Advance Loans


1
How to Take Advantage of Online Cash Advance Loans
Advantage of Online Cash Advance Loans? In the
earlier days when debt was still new and banks
were the safe option while individual lenders
were the other option that were mostly
unregulated, borrowing was quite a risk. It
wasn't a risk just for the borrower, but also for
the lender. Fast forward to today's time, and a
lot of regulations and close oversight have made
lending much safer and hence something that a
large number of people in the US depend upon.
Here, we take a look at cash advances - the short
term loan products offered by direct lenders
(non-bank). More specifically, we shall be
discussing how one could take advantage of the
online cash advance loans - those that such
lenders offer through a completely online
process, which is aimed at convenience, quickness
and much lesser filtration, which leads to a
relatively expensive deal for a borrower. But
here's the catch - the terms are so short that
the final absolute amount of money that one pays,
may not be too much. How to Keep Costs Low? Let's
start with the basics - cost. This is what makes
a loan less attractive versus spending savings
and this is also what mostly makes one of two
similar loans more attractive than the other.
There are two ways to look at a loan's cost - one
is to understand what percentage of interest you
would be charged and the other is to understand
how much you will pay back over time, for the
amount that you borrow. The former is what is
indicated best by APR and the latter is the
absolute cost of the loan. APR Increasingly being
touted as the right way of measuring a loan's
expense, APR is how much simple interest you pay
on the loan amount per year. While this is a
valid way to compare loans of similar tenure and
similar processes, it is important to understand
that loans with significantly shorter terms would
tend to have exponentially high APRs, which
however might not cost the borrower much in
totality. For example, if a loan is being taken
at 10 APR for 100 days, it would cost the same
as one at 100 APR for 10 days. Also, a loan
being taken at 20 APR for 100 days, would cost
twice as much as one taken at 100 APR for 10
days. The trend for the debt market is simple.
Where there is higher risk, the loan lender shall
expect higher returns. APRs of cash advances that
are available easily to almost everyone (since
the credit check is mostly not mandatory) with no
complex paperwork or collateral, are high for
this primary reason - the lender is taking a
bigger risk while choosing to make the decision
to lend accommodating these terms. Absolute
Cost When taking a cash advance loan, it is very
essential to understand the absolute cost of your
loan. Fair and trustworthy loan lenders will
disclose this clearly on websites in appropriate
sections and also understanding one's contract
would help understand this too. It is simply the
amount that a borrower pays in excess while
paying back the loan, over the amount that they
borrow. At a much higher APR, the absolute cost
of a very short term loan can still be lower than
a low APR loan with a long term. So essentially,
it comes down to the borrower's needs, situation
and financial health, to decide when a cash
advance is right.
2
To keep costs low while taking a cash advance, it
is essential to choose the best deal and then
stick to the payback schedule as very short term
loans given by lenders at high risk are bound to
be quite expensive in case of delays in
payback. Why Choose Online? When a non-bank
direct lender loan is what you need, you shall be
looking for other lending entities. Lenders that
deal with higher risk loans are limited in number
and it would be harder to find the right,
reliable solution. Thanks to the internet, there
are bloggers, reviewers, and a ton of other
references available to find out about and
estimate the performance and reliability lenders
who deal online. This is not the case with
lenders who operate from pawn shops whose
services are less exposed and reviewed. While
this makes the online direct lenders the right
choice, it is not the only benefit you get when
dealing with online lenders. Other distinct
advantages include Helpful in emergencies
rather than running around looking for loans, the
person in need can apply for money online and
focus on addressing the actual emergency better
More competition always leads to better deals
for customers over time No paperwork most
such loans would require no paperwork -
everything is done through scanned documents and
e-signatures Accessible wherever the
internet is An internet connection on your
smartphone, laptop or desktop is all you
need EzPaydayCash is an example of a trusted
lender and on their website, their most in-demand
services are their online payday loans from
direct lender. When Not to Take a Cash
Advance? The non-bank direct lender short term
cash advance loans we refer to, are typically
aimed at serving as an option to borrow money
when at least one of these are applicable i.
The borrower suffers from poor credit scores ii.
The borrower is in a hurry for a small
loan iii. The borrower needs a very short term
loan iv. The borrower has been rejected loans
from other sources v. The borrower is only
able to borrow online and that is making less
expensive loans unavailable If none of these
describe your situation, it is advisable to look
at other options of loans before closing any
deal. How to Use Online Cash Advances Wisely to
Your Advantage? Loans of different types are
designed to be beneficial for different people in
different needs. In the debt market, there
doesn't exist a one-size-fits-all product and
this is a very important thing for borrowers to
understand. Having read this article until here,
one would know whom the cash advances are
designed for. A few cautions and a little
accurate understanding can make this otherwise
risky form of borrowing, beneficial in some
situations. Here are six tips that can make the
loan serve you to your advantage Research
to see if an option with a lower absolute cost is
available to you and suits your needs Borrow
only as much as you need, only when you need it
3
Be prepared to pay back the amount as per
the schedule - delays in shorter term loans are
typically more expensive Read your agreement
carefully so you understand the loan well If
you can pay them back on time, borrowing for the
shortest amount of time can save money in many
cases. Understanding the terms and calculations
or using tools for that, can be helpful here
Borrow to improve your credit score if needed and
then pay back on time. Eventually more loans with
lower interest rates might be available to
you. Conclusion Online cash advances from direct
lenders are useful and hence in great demand.
However, understanding the loan helps one
understand when and how it could be advantageous
to choose such a loan. Not having such
understanding could cost the borrower money. If
you're looking for the best deals on short term
non-bank cash loans that are available to
borrowers irrespective of credit history and with
instant responses, we hence suggest an online
cash advance from direct lenders only and
EzPaydayCash is one of the frequently recommended
options offering such services.
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