About Unsecured Lending: Short-Term Financial Help
Today's poor economy has been rough on everyone, some more than others.
The nation's credit crunch has left millions of Americans struggling, trying to find a way to make ends meet. These consumers might be fortunate enough to just get by with enough funds to cover their fixed monthly expenses.
What happens, though, when the unexpected occurs? Cars break down. Children get sick. Roofs begin to leak.
For those who are just getting by, these unexpected expenses can hit their finances hard.
Fortunately, for these individuals, there is hope. A short-term loan in the form of a cash advance can provide that temporary financial lifeline to help consumers get through a rough financial patch.
How These Services Can Help
Cash advances provide consumers with access to much needed funding, typically within a 24-hour period. These services are intended to serve as emergency financial relief and often require the consumer to repay the amount owed within 14 to 30 days, or by the person's next payday.
The benefits of payday loans include their speed and convenience. While applying for other types of lending services often requires filling out a significant amount of paperwork and waiting for days to get approval, these advances generally are approved in a matter of minutes.
How to Apply Quickly and Conveniently
A customer has two options when it comes to securing funds.
The first option involves visiting a local check cashing business where the consumer provides a personal check made out for the borrowed amount plus finance charges. In exchange, the lender then provides the consumer with instant cash while holding on to the individual's check until the repayment deadline.
The second option allows the individual to apply for financial relief online. To acquire funds online, the customer provides the lender with his or her bank account information. The lender then deposits the money directly into the consumer's bank account.
How to Qualify for Assistance
In addition to the speed and convenience of online borrowing, another perks is a applicant does not need to have good credit to qualify in most cases. However, there are some requirements that people do need to meet.
Most lenders will require the following:
- The person must receive a regular income through employment or a government program, such as social security or welfare.
- If the individual is employed, he or she must earn at least $1,000 per month. If the borrower receives income from a government program, he or she must receive at least $800 per month.
- The consumer must be at least 18 years old and be able to prove American citizenship.
- The individual must have an active savings or checking account with the possibility for direct deposit.
How to Repay Your Lender
Unlike other types of lending services that are repaid with a series of payments, a consumer should plan to take care of what you owe in one lump sum.
When it comes to taking care of what you owe, the person does have a few options:
- The individual can repay the lender directly and thereby redeem the original check.
- The customer can allow the lender to cash the check and obtain the funds from the borrower's checking account.
- If the customer wishes to extend the due date, he or she can pay a finance charge and roll the balance over until the next payday.