Finance 101
July 15, 2021

Cash Advances 101: Learning How Cash Advances Work

When you run into unexpected expenses, getting help can be as easy as searching for "cash advances near me." So, what exactly is a cash advance? A cash advance is simply another term for a payday loan. Many private lenders offer these loans, so it's easy to find one with terms that will work for you. When you are applying for a cash advance, it helps to understand what the repayment terms are and when you should be applying for one. With our simple guide, you'll have all the information you need to make your decision.

What Is a Cash Advance?

A cash advance is a short-term loan that gives you cash for dealing with emergencies like abnormally high bills or medical injuries. They are also called payday loans or payday advances because this type of loan essentially gives you an advance on your next paycheck.

A cash advance is not the same as a credit card cash advance. When you go through a cash advance loan company, you don't need to have a credit card to get the advance. Furthermore, you can shop around for the best deals instead of being limited by whatever terms your credit card company uses. Unlike most credit card cash advances, a standard cash advance loan will let you apply online. If you live in a rural area, the option of picking from all sorts of online cash advances is especially helpful.

How do I get a Cash Advance?

When you realize you need a little extra financial help, it's fast and easy to apply for a cash advance loan. All you need to do is visit your lender's store or website. The process consists of the following:

  • Application
  • Information verification
  • Approval decision
  • Funds transfer
  • Repayment

While traditional loans come with lengthier applications that require an in-depth look at your personal finances, the application for this quick loan is usually shorter. Typically, when you go with in-person or online cash advances, the application does not require as much personal information.

Since the requirements are minimal, the lender will take, in most instances, minutes or less to verify the information from your application and figure out how much to offer you. Once the lender completes the verification tasks, they'll take your state's cash advance laws into account and make an approval decision. The lender will usually let you know their decision the same day.

Following approval, the lender will offer you a specific loan amount. When you accept the offer, the lender will work with you to complete the paperwork. Typically, lenders will explain the terms and payments as well as allow you to read the contract before you sign. The next step is electronically sending the funds to your preferred financial account.

You can use these funds for whatever you need right away. Depending on your state law your repayment is due on your next payday. Once you repay the amount according to the terms, the whole process is finished.

What's Required for a Cash Advance?

With this type of quick loan, it should not take long to fill out your application. Every lender is different, and laws can vary by state. However, most places have the same basic requirements:

  • Proof of active checking account
  • Proof of income
  • Valid government-issued ID
  • Working phone number

What Kind of Payment Terms Can I Expect?

Unlike traditional loans that take several months to a few years to pay back, cash advances (also known as payday loans) have much shorter repayment terms. Since they're designed to help out with emergencies, you should pay back the loan as soon as you're back on your feet financially. With a cash advance, the repayment term is typically due on your next paydate. Some lenders may allow a repayment term up to a few months or longer if their state laws permit it. 

Cash advances vary by state but typically they are flat fees such as $15 for every $100 you borrow. You repay on your next paydate.  Some states allow Extended Payment Plans (EPP) should you not be able to pay your loan on the due date

Cash advances provide fairly flexible payment schedules, but you have to pay all the money by your loan's due date. Whatever the terms, your lender will discuss the requirements and your payment options to ensure that you understand them.

When Is a Cash Advance the Right Choice for Me?

Now that you know all about how cash advances work, let's talk about when you might need to start searching for "cash advances near me." There are all sorts of situations where cash advances can be a major help. Here are some examples of reasons you might need a fast loan:

  • Your car requires an urgent repair, and you need it to get to work.
  • You've got a leaky roof that will flood your whole home if you don't get it fixed soon.
  • You need emergency dental work and waiting will just make it worse.
  • There's extreme weather headed your way, but your HVAC system is broken.
  • You suddenly realized you need to purchase an expensive textbook before your next exam.

Whenever you have a financial emergency and just need a little extra money to make it by, cash advances may make sense. At Check `n Go, we provide both online and in-person cash advances, so you can find the right loan for your needs. Our team is always here to help you learn more about cash advances, so feel free to contact us if you have any questions.*