Cash Advance Loans 101: A Basic Course In
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How the Loan is Repaid: Postdated Checks
When you take out a cash advance loan, you will give a postdated check to the lender for repayment. The check will cover the loan amount together with any fees. The lender will hold your check until the stipulated date of repayment, and then deposit it. The usual term of such loans is two weeks. Some lenders allow you to repay the loan amount in four weeks instead of two. It all depends on the lender.
While using this particular loan option, a postdated check is given to the lender. This check is held until the stipulated date of repayment. Generally, loans are offered for two weeks but some exceptions can be found in this regard as some lenders allow you to payback your loan within four weeks time. This can be an important issue because you want to make sure you have the money available to cover the repayment check.
What to Remember When Making The Loan
What are the key things to remember when making a cash advance loan? The loan agreement is a legal document; you are entering into a contract. The loan agreement will give detailed information on all aspects of the loan and your repayment. Make sure you read the document completely and understand all of its terms. Here are some of the specific types of information you should be sure to note when reading the agreement.
• Double-check the amount to be transferred to your bank account. Because the fees you will pay are based on the loan amount, you want to make sure you are not accidentally being given too much money.
• Verify the APR or Annual Percentage Rate. This number will usually be surprisingly high. In some states, the APR has a fixed maximum amount. In other states, such as Wisconsin, lenders can charge any interest rate they choose. Know the laws for your state, and as much as possible, make sure you are getting the best interest rate.
• Confirm the date and amount of the postdated check you will supply for repayment. Expect to provide this check when completing the loan agreement.
• Make sure you understand when the funds will be transferred to your account and available for your use.
Choosing a quality lender can make the entire cash advance loan process go much more smoothly. Sometimes you can judge the quality of a lender by the simplicity of their loan agreement. Quality companies have nothing to hide, and are more than willing to make their terms easy to understand. On the other hand, some companies use complicated agreements to try to camouflage previously undisclosed charges or other details. Make sure you read the entire agreement and understand all of it before you sign anything.