How to Use Short Term Cash Services
by David Sung
Short term loan services have a bruised reputation in the financial industry, but a lot of that is because of an inadequate knowledge of the services. The goal of short term loans is to bridge the gap during financial shortfalls or emergencies. However, just like any loan from a financial institution, there are conditions that have to be followed to keep the borrower in good faith with a lender.
We understand more than anyone that a financial crisis comes unexpectedly, and even with a savings plan, it’s sometimes impossible to be prepared. Options like cash advances and installment loans
can be life savers when bills are piling up and your next check is weeks away. It’s important to assess your needs first before committing to a short term lending service.
Use it For the Right Reasons
Relying too heavily on a cash advance can create an unhealthy cycle of financial instability. You should use them to relieve unexpected expenses, not as a constant way to pay your bills or have extra cash on hand. Making a cash advance part of your “income” can lead to trouble, and for some it happens unintentionally. Monitor your spending habits and use loans as a way to support your budget – not sustain it. Understand that it is a loan, and you are expected to pay it back.
Know Your Limits
There are plenty of companies that offer emergency financial relief, but there is often a catch in the fine print. Know exactly what you’re committing to before you sign. The amount you can borrow varies by state
and the type of loan. Finance rates, fees and miscellaneous charges increase your borrowed amount. If you’re not careful, you could end up having to pay back more than you earn. To avoid that, don’t borrow more than you will receive in the future.
For instance, if your next check will be $1,800 borrow less than that amount – say $1,200. Then you can pay back the loan and the interest and have some cash left over so you don’t need to borrow more to cover additional expenses.
Talk About Your Options
Cash advances, title loans and installment loans offer similar benefits to smooth out a money crunch. When you are considering these plans, speak with a representative about which cash loan option
will best suit your current situation. Certain requirements need to be met before you’re approved. Cash advances and installment loans typically need:
- Proof of income or recent paycheck stub
- Checking account statement
- Personal check connected to your checking account
- Driver’s license or State ID
Title loans require:
- A vehicle you own
- The title of that vehicle
- Driver’s license
If you research other lenders in your area, you may find that their requirements differ, but you should expect to provide those items at a minimum. For more information, contact a Cash Store employee at a location near you. We are happy to help you get the loan that's perfect for you.
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