Definition: What Is A Cash Advance?
A cash loan is a loan that is paid out to the borrower immediately in cash . Thus, the loan is the borrower directly at leisure. The modalities are similar to a installment loan. Consumers should compare and test the interest rate and repayment modalities before applying. The proximity to the credit line is explained by the simple access to the credit approval. The cash advance is often granted by banks with appropriate creditworthiness immediately upon opening an account. The sum with which the account is covered is a cash advance. This cash advance is usually linked to a very high interest rate .
In addition to house banks , online banks , private financiers and other credit intermediaries also offer online cash advances. The prerequisite is a creditworthiness of the consumer oriented to the requirements of the lender.
The unique selling point of the cash loan is the cash payment
For example, customers who do not want to apply for or withdraw their credit at the bank branch can get the cash from the postman.
Another variant of the cash loan is the so-called quick loan . This loan is often offered by Swiss banks or private investors. Here, the term cash advance is synonymous with the loan with quick payout , because usually the payment is made to the bank account. The third variant is the credit line . This is about expanding the chart of accounts. Customers have the opportunity to spend more money with an appropriate credit line than they have on their account. Here, too, one speaks of a cash advance, because at the cash machine the consumer additional money is provided as credit.
What are the requirements and conditions of a cash loan?
Anyone wishing to take out a loan from a German bank must fulfill a few conditions and conditions.
These include, among others
- the age of the applicant,
- an income and
- a permanent employment relationship or appropriate tax records for self-employed.
In Germany, only persons who have reached the age of 18 can get a loan. Many banks have also set an upper age limit. For example, loans to retirees and senior citizens are hardly ever awarded. These persons also switch to a cash advance if necessary. Another requirement for a loan is a permanent residence in Germany. If the income is not enough to serve the loan without difficulty, it is also problematic to receive a cash advance. It also checks the type and duration of the employment relationship before approving a loan. Loans interested in a fixed-term contract or workers who are still in the probationary period have little chance of obtaining a loan from a German bank. If a negative entry is added to the SCHUFA, interested parties do not need to submit an application because in most cases it will not be approved without adequate collateral.
Take an online cash advance
Another option to take an online cash advance are state-regulated small loans from online providers. Here, too, interested people must have a main residence in Germany and have a fixed income. The amount of income should be at least 500 euros. Even students or the unemployed easily reach this amount. This is the first hurdle for many loan seekers. The second hurdle is for many loan seekers an entry in the SCHUFA. Unlike other lenders, CP Finance makes differences here. Due to short maturities, CP Finance can adjust the policies used by banks and also provide loans to medium credit clients.
An alternative is the so-called Swiss Credit. Interested parties must have been permanently employed for at least twelve months and have a permanent address in Germany. The minimum age is set here to 18 years. The interest and the repayments depend on the loan amount. With the Swiss loan a registration in the SCHUFA does not matter. If you are interested in a Swiss loan, you should look closely at the modalities and the interest rates. As a rule, interest rates are very high.
What are the advantages and disadvantages of a cash loan?
Cash advances are often used for short-term bottlenecks. The amounts are usually between 250 euros and 500 euros . Interesting are these loans, if the term is very short. With that, the bank gets its money back quickly and customers can fulfill their little wishes along the way. This can be holidays as well as wedding dresses, a new computer or a used car. With short maturities, the rates are small and the interest rates are favorable. Exactly this combination makes this loan so interesting. The situation is different when the loan is used as a credit line. In that case, interest rates are so high that low-income consumers find it difficult to get out of the dispo trap. In such a case, it is much better to arrange a loan with the house bank in order to replace the disposition. With the cash advance, the installments are manageable and can be easily compensated.
For whom is a cash loan suitable?
The Bardarlehen is intended primarily for short-term assignments. Short-term requests or necessary purchases can also be made in the event of financial bottlenecks. Anyone who knows exactly that they can balance their credit within a very short time can also use it as a dispo. Who plans to repay a longer period, should look for a reputable provider. It is important that consumers pay attention to interest and payment. The Internet offers numerous loan comparisons to help consumers find a cheap loan that fits their financial needs.
Apply for the loan online The request for the loan takes only a few minutes. Fast credit decision Thanks to a digital loan application, the loan can be approved without delay. Immediate withdrawal Thanks to the express option, the loan can be transferred directly to the account on request.
If you need short term money to bridge a financial bottleneck or pay a certain bill on time, make the right choice with a mini loan from CP Finance. The provider works reputable, fast and reliable, so you receive the feedback and possibly also the payment on the day of your request. A bank loan is recommended due to the many disadvantages nowadays only for large investments.