Cash advances are types of loans which can be availed as advances for any particular reason. It should be repaid within a stipulated time frame. Cash advances are often charged with certain interest applied and is fixed with the number of percentage points on the prime rate. Moreover, there is a grace period provided for repaying in which no interest rates are charged. These two factors assist the cash advances to make more luxurious than other types of debt finance. Cash advances are provided by most credit card and charge card issuers. This service help the cash holder to withdraw the cash from ATM or the holder can take the cash from the bank counter up to the cash limit. The user can use this card up to a certain credit limit.
When the user uses the credit card, they are typically charged with high rate of interest than store purchases and normally don’t attract an interest-free period. The cash advances are provided for the card holders and they need to repay the amount within the prescribed time. If the user doesn’t have the card, the user can withdraw the money by referring their cards pin number to the officials present in the appropriate bank counter. Generally the users are charged with high rate of interest on the debt amount. These loans come in handy when the person meets with unexpected expenses and the user can easily overcome these unexpected expenses by utilizing these loans. The services of the cash advances are very efficient and they are very fast. For achieving this loan the borrower should be more than 18 years of age.
The borrower can apply for these loans through online also and the borrower should fill the online application form provided by the lending agencies. The borrower should provide the active bank account details and some paper work for enhancing the approval of the loan. The cash advances is very prominent while borrower should provide the post dated checks in favor of lender which indeed help the lender to withdraw the money from the borrowers account if the borrower fails to pay the debt in right time. After complete verification the lender will deposit the borrowed money into the borrowers account directly. The rate of interest laid on the borrowed amount will differ from one lending agency to the other.
The lender can put a legal case if the borrower fails to pay the borrowed amount within date. These cash advances are favorable if the borrowers repay the money in time. The lenders sometimes use unethical practices to get back the money which makes the things worst.