Cash advance lenders are payday loan providers. There are direct lenders and there are brokers, facilitators or aggregator websites. It is better to avoid all indirect lenders and to speak with cash advance lenders directly. Wherever you get the slightest indication that you are talking to a third party consultant or a company that is not the one lending you the money but merely facilitating it, you should opt out.
When you deal with cash advance lenders, a lot of factors will influence your pondering. You may focus more on the cash or the ease of application. You may focus on how long it would take for you to get the cash. You may have bad or poor credit and thus a lender that doesn’t conduct a credit check will be more relevant for your quest. Whatever is the primary and secondary objective, the various factors influencing your choice and the compulsions you have, you must focus on the fine print of cash advance lenders.
Here are a few reasons why studying the fine print is so important.
– You should get to know the minimum and maximum loan amounts that the lender will approve. Get to the policy that determines the minimum and maximum amounts. A company has its right to not disclose its discretionary powers or policies. However, credible cash advance lenders will adhere to state and federal laws. They would not offer a loan amount greater than the stipulated maximum. There are state laws pertaining to the same. Also, the company must have a reason to set aside a lowest amount. The loan amount that you qualify for will depend on your ability to repay. Hence, the company should have a policy where only your ability to repay matters and not the discretion of the loan officer. Some lenders may reduce the loan amount you qualify for despite having the necessary income because of a poor credit history. That shouldn’t happen.
– Check out the processing fees. Some cash advance lenders have a loan disbursement fee, some charge processing fees and some combine these types of charges. Some cash advance lenders charge insignificant amounts while some may charge hefty amounts. You should know what charges you are paying, why, when and then assess if they are reasonable.
– Focus on the late payment charges, penalty and the legal implications of breaching any clause of repayment. The rate of interest is not the only number that matters. You must know what you are liable for should you miss the repayment date or have some trouble with the cash advance lenders in the future.