Are cash advance loans really helpful? Or it will only put you deeper into debt? This question is kind of hard to answer because a writer can never express the opinion of each and every reader that will come across this article. What may be simple, is to try to lay out frequently asked questions when it comes to cash advance loans. This way, this article will be a better reference should anyone be into this kind of situation.
First and foremost, this kind of loan is taken advance when one in need of financial assistance to be able to build himself or herself back. And in any kind of loan, it is always best to pay it off on or before the due date. Below are some questions being asked by some people about cash advance or short term loan:
Can a borrower check on his or her loan balance anytime?
Of course it is possible. This is a right given to all borrowers and this can be done on any business hours the financial institution is open. This is a fact that is stated on fair lending act so this can be practiced by any borrower. Not only the loan balance but the borrower can get his payment history and the amount to be paid on next due date.
Can a borrower pay off loan early?
Absolutely, yes! There is no law that prohibits the borrower to pay off loan early. In fact, this is being encouraged by all financial institutions. However, it will better if the borrower will clarify with the institution if there is any hidden cost or penalty in paying off the loan early. Paying off loan advance is a win-win situation to both the borrower and the lender. The borrower saves few percentage of the interest of the loan if paid in advance and at the same time, the lender is able to secure his money back early and this will allow them to use the money again as their revolving capital. On the positive side of the borrower, this implies that he or she is back on track again financially.
Once loan is paid off, can the borrower loan again?
The answer again for this one is yes. Once a borrower paid already the loan, this means that he is a positive client of the financial institution. Because of this good history, the next loan that will be applied by the same borrower may be easier and at the same time, the financial institution may increase the approval limit of this person. It is possible that the borrower can be given 50% or higher when it comes to the increase of the approved loan. Since the risk in lending to this client is also not as big as first time borrowers, financial institution may give discount on interest rate.
In general, taking advantage of cash advance loans can be easy during times of need, so go ahead and prepare all the necessary documents and talk to your nearest financial institution.