Sources of Cash Advance in Canada
There are many sources of cash advances in Canada cashmax installment loans . This article has tried to give guidance on what is available to one who is seeking such sources.
What are Cash advances?
Cash advances are short-term loan options designed to offer quick money for emergencies. Normally, lenders give such advances to borrowers, tied to some expected income from such borrowers. Lenders expect that the borrower will repay the loan within a shorter time.
Characteristics of Canada Cash Advance
Cash advances have convenient terms and conditions. You can choose a convenient timeframe within which to pay back your loan.
You may use your cash advance to meet whatever expenses you choose without restriction. You may choose to pay credit card bills, cater to hospital expenses or do home renovations.
The approval process is easy and efficient. You complete a simple application after which you can get your loan approved within a day. You avoid much paperwork and queueing. The loans are however advanced at quite high interest rates.
Types and Sources of Canada Cash Advance
- Cash Advance Loans/ Pay Day Loans
These loans are given through storefront lenders and online. As a borrower, go through online reviews, find a ‘friendly’ cash advance, and apply accordingly. A borrower is required to write a cheque bearing the lenders’ name and date of your next paycheck. The cheque includes interest and other fees charged by the lender. You are expected to pay principal, interest plus other fees in one lump sum. Cash advance loans can consume up to 36% of the majority of borrowers’ income.
There is a roll-over option if you are not able to repay the loan, at twice the amount of interest. This may put you into serious debt.
Good cash advance providers provide a user-friendly online application taking about 5 to 10 minutes. Such lenders also accept digital signatures, further simplifying the application process. After approval, you may collect your funds the next business day in your account. You may also choose a lender who allows in-store pick-ups if you need cash the same day.
(2) Credit Card Cash Advance
These are loans from credit card companies. The companies will lend you money which you pay back with interest and fees. You conveniently access your cash through ATM. This is considered an expensive mode of borrowing money. Paying back is critical. The interest rate is usually higher than on other loan types. The longer you take to pay back, the more the interest you pay.
- Employer Cash Advance
This is advanced from your next paycheck. Strictly speaking, it is not a real loan. This type of cash advance is given under strict policies that check the number of times you can request and qualify for the advance. It is reserved for when one has a real emergency. Where available, it is a convenient source because it is usually interest-free. Employers are not however obligated to give such loans to their staff.
Many cash advance facilities should be approached with great caution and should only be utilized when necessary. For those who are pressed to the point they must take such facilities, the foregoing has attempted to give some light on what is available. It is best however to rely as much as possible on your savings for your emergency needs.