Bad credit cash advance is good for people who have bad credit and are in dire need of cash. However, it cannot be denied that some people, due to mismanagement of funds, pay so much more than the actual amount they received from their bad credit cash advance.
The main trick is to be wise on your spending. It is also best to prepare for your payment as soon as the loan is approved. This way you do not have to cram for the payment when the due date is fast approaching. You do not want to pay more because you skipped the payment schedule. More importantly, you should know all the fees and charges you may incur once the loan is approved.
The Fees for Bad Credit Cash Advance
The fees differ from one lender to another. At the same time it will depend on the amount that you wish to borrow as well as the level of your income. Since different lending institutions provide different fees, it is important to read the terms carefully. Make sure you have considered all the payments stated in the conditions.
Average Charges for Bad Credit Cash Advance
Although the payments vary, the average fees for bad credit cash advance are counted based on every $100 loan amount. The fees range at about $10 to $30 each. Most lending institutions charge on the higher range of fees since bad credit cash advance is a high risk transaction. Meaning, given your credit history, there is a high risk that you cannot pay the loan back. This is the main reason why they charge higher fees. Think of it as a guarantee that their business can still survive even if there are a couple of missed payments.
In perspective, if the fee charged by the lending institution is $15 for each $100 bad credit cash advance, the annual percentage rate for that loan is 391.07%. You may be thinking that this Annual Percentage Rate is high. This is one of the consequences if you do not pay the loan on time.
Bad Credit Cash Advance Due
The due date of bad credit cash advance usually happens within 14 days since its approval. By the time you receive your next paycheck, there may be changes that lenders may offer. For example, some lenders allow their loans that extend to as long as 21 to 28 days. In this case, cash advance for bad credit is charged with higher fees.
In case you are not able to pay the loan on its due date, some lenders allow you to pay for the finance charge and extend the loan instead. If this is the case, the bad credit cash advance should be paid within 14 days. Each of the bad credit cash advance lender has its own rules that govern the terms. This is why reading the bad credit cash advance terms and conditions save you from more financial problems.