As the name implies, a cash loan allows borrowers who need cash fast to submit a request for and receive their cash loans as soon as 1 business day, if approved. And if you’re thinking these convenient loan alternatives are used only by those with less than perfect credit, think again.
Many people who have excellent credit find themselves in situations that can’t wait for traditional bank approvals and discover an online loan is the right solution.
In a time when banks are raking in nearly $40 billion a year in overdraft charges, it is clear cash loans are quickly becoming not only the best option for those strapped for cash, but the only sensible option. A 2009 piece featured in USAToday exposed the way many traditional banks are taking advantage of customers who overdraw their accounts, including allowing those checks for bigger dollar amounts to “clear” an account before several small checks follow. This results in massive overdraft fees for consumers. Realistically, a ten dollar mistake in a customer’s calculated balance in his checkbook could cost hundreds of dollars. Most banks are charging anywhere between $29 and $35 for every NSF fee. If it can be avoided, naturally, consumers are going to be looking for a better solution. This is where the benefits of a cash advance become clear; and also explains why more consumers are turning to these methods of covering the bases.
But that’s not all. The Credit Card Accountability Responsibility and Disclosure Act of 2009 takes effect in late February 2010. On the surface, and indeed the bill’s sole purpose is to provide protection to consumers who have been hit by late fees and interest rates by the credit card companies in a struggling economy. This new law will limit the power credit card companies and banks wield over their customers. This means those same banks and credit card companies many consumers have always turned to are now creating new ways of collecting fees on top of fees that are not included in the new law.
For instance, many banks will be offering a ten percent reduction on their total interest rate if their customers pay on time. One day late, though, and you pay the full 29% – along with late fees and bigger charges for cash advances -and this is the new “middle of the road” interest rate. This only reiterates the benefits of a cash advance loan. Consumers have taken a new position on those financial products they have always relied on and that position no longer favors those traditional cash sources. They have quickly become expensive options, even for those with exceptional credit histories.
The process is much easier and far more streamlined, too. Provide proof of income, verification of identity and banking information, and within minutes, you may be approved for a cash loan. Even those with pay periods that vary from one month to the next can still submit a loan request, if approved. After all, that’s what every consumer wants: a company that works with them – and not against them. See the difference a cash loan can make in your family’s finances.
