Are cash advance loans legit?

The company offers an online lending network that allows consumers to request and receive cash advances and payday loans. However, cash advance loans often carry high fees and the danger of being caught in a debt cycle.

Are cash advance loans legit?

The company offers an online lending network that allows consumers to request and receive cash advances and payday loans. However, cash advance loans often carry high fees and the danger of being caught in a debt cycle. Cash advance loans come with loan rates that can equal APR in the 300% to 500% range, but they can be much higher. But you should proceed with caution, and not just because short-term cash advance loans are dangerous products in themselves (although that is a reason to be careful).

DFI has received reports of apparent scams by individuals claiming to represent Advance America, Cash America, Cash Advance America, Cash Advance USA, Speedy Cash and Advance America Payday Loans. Several consumers were contacted by people who said they were collecting a debt with Cash Advance America, Advance America or Speedy Cash. The common theme among positive evaluators seems to be gratitude for the ability to secure rapid funding, despite the inherently high rates charged for short-term cash advance loans. The biggest disadvantage of the short-term cash advance loan is its extremely high APR, which can easily reach three or even four digits, depending on the loan and the lender, making them one of the most expensive credit products on the market.

We also found a warning issued by the Washington State Department of Financial Institutions regarding a Cash Advance USA scam. Depending on the size of the loan you need, a personal installment loan can be a significantly better alternative to a short-term cash advance loan. You may not realize that the rate is that high when you apply for a cash advance loan, because the loan costs are usually advertised as a fixed dollar amount. And of course, always consider your options carefully before applying for a short-term cash advance loan (or any other high-interest debt).

Once you have been approved for a cash advance or short-term loan, you will receive the funds as soon as the next business day. Before you apply for a cash advance loan or any other type of short-term loan, here are some important things to consider.

Diana Macall
Diana Macall

Wannabe burrito buff. Friendly music advocate. Proud music advocate. Evil pop culture geek. Zombie specialist.

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