Credit Options
Learn the nitty gritty difference between cash advance loans and conventional loans
Money lenders exist to make money with money. They do this by loaning out money at a cost to the consumer, generally through fees and interest.
Conventional Loans
There are many types of loans, or credit products out there. Banks and big lenders give conventional loans for things like college, real estate, business, and cars. These loans typically come with hordes of paperwork and long repayment periods, so be prepared! The funds also are not immediately available, but can days to weeks to obtain, however, these loans are invaluable when you need a large amount. Lately, conventional loans are hard to get, especially in this day and age. Credit has nearly dried up in the wake of bank failures and unscrupulous lending practices. You must have excellent credit and documented assets that will cover the cost of the loan in case of default. Many people are struggling to get these types of loans because the value of their main asset, their home, has fallen. They can no longer obtain a home equity line of credit to cover credit card debt or college expenses.
Cash Advance Loans
Cash advances are like speedy microloans. They are highly convenient and easy to qualify for. They require minimal paperwork, and are available to people who have bad credit and no assets. Typically, the only collateral they require is that you have a steady income and a bank account. You can apply for a cash advance in person, via fax, or online. The process is seamless and quick, and typically, the money is deposited in your bank account the next day. In comparison to conventional loans and lines of credit, these loans are very small amounts. They typically are no larger than your next paycheck amount. In addition, quick loans have to be repaid quickly, over a period of weeks. This is greatly different than a conventional loan! Payday loans are not for big purchases, like homes or college tuition. Fast loans exist for emergency needs, such as unexpected bills or expenses, and go by many names, such as paycheck advances, cash advances, and instant payday loans. The fees and interest rates on quick loans vary widely. Just as you do for a conventional loan, do your research before taking out a cash advance to make sure you are charged fairly for the credit.