Finance for Bad Credit Borrowers – Regular Loans Vs. Cash Advances
There are many kinds of loans that are available in the market to meet the financial needs of different borrowers. Regular long term loans, online cash advance loans, payday loans, mortgages, credit cards- the choice is many and varied.
There are still many people who have limited finances because the recession wiped out their savings or resulted in drastic pay cuts. For these people, taking a loan is the only way in which they can meet unexpected expenses. But the poor financial condition of these borrowers may also have resulted in missed payments on previous loans, thus damaging their credit score. In this case a regular loan that is affordable may be difficult to find. This is where online cash advances prove very useful.
What is Online Cash Advance
Online cash advance is a kind of loan that you can apply for through the internet very conveniently. These loans are the quickest and easiest loans you can avail of when your poor credit score prevents you from qualifying for attractively priced regular loans. The online cash advance lender processes your online application within hours and makes the funds available to you in 24 hours or less. The funds are directly credited to your account so you can start using them right away.
Online Cash Advance vs Regular Loan
Credit check
For a regular loan, the lender undertakes a detailed examination of your credit score to assess what kind of risk you pose. The interest rate he will charge on the loan depends on his evaluation of risk. So this is an important part of the process and takes sufficient time.
Online cash advances do not entail the extensive and time consuming credit checking that is a necessary and indispensable part of regular loan processing. Cash advances are specially designed for poor credit borrowers. As the lender is already aware that your credit score is not perfect, there is no further need for him to run a credit check. The elimination of this process saves time in processing the application. That is why many lenders even offer instant approval cash advances.
Personal Visit To Lender
It is impossible to process a regular loan without visiting your lender in person. There are many documents, such as pay stubs, bank statements etc that you need to submit. You also have to sign various documents to complete the loan processing procedure.
All the preliminaries pertaining to an online cash advance can be completed online, eliminating the need for you to make a personal visit to the lender. Bad credit borrowers who wish to retain a semblance of anonymity find this aspect a great blessing. All they have to do is identify the lender, fill out the application form and submit it online. The transfer of the loan amount is done through electronic transfer so there is no need to visit the lender to pick up the funds either.
Time Taken To Access Funds
A regular loan will entail quite a few days for processing and approval. There is likely to be a gap of a few days to a few weeks between the time of your application and the time at which you actually get the loan.
Online cash advances are also called ‘instant’ loans because the funds are in your account within a day of your application. This is why cash advances are the best solutions when you have an emergency expense to meet and your payday is still quite a few weeks away.
