Cash In Advance Loans are designed to help people with unexpected, temporary cash needs. In most cases, these cash advances are offered until the person’s next payday. However, for some people they are not able to repay the loan within the specified time period. In these cases, there are a number of renewal options that are available; however, it is important to understand that these can vary by lender and state. Understanding the options that are available will help you determine if a cash advance is the right source of money for you.
Refinancing
When you refinance your cash advance you will be able to extend the period you have to pay for your loan. Borrowers that qualify for a larger loan amount than their original loan may be eligible to receive a bigger loan if they refinance. In a number of states, the borrower has to pay down a portion of the initial loan before they are considered eligible for a refinanced one. There are also a number of states that limit the total number of times that a borrower are able to refinance their cash advance during a specific period of time.
Rollover
A rollover provides access to additional cash, in addition to allowing the person borrowing the money to consolidate their active cash advances into one, easy to pay installment loan. In most cases an installment loan offers a higher amount of money than a traditional cash advance, as well as an extended repayment period. When you choose a rollover, the borrower will be required to use a portion of the proceeds of the provided installment loan in order to pay off the finance charges applied to the cash advance. Rollovers are not available in all states. In a number of states, a borrower may be limited by the number of cash advances they are able to roll over in a certain period of time. It is important to be careful of the number of rollovers you take on, as they can create a serious debt situation if they continue on for extended periods of time.
Payday loans and cash advances are extremely beneficial when you need quick cash. There are a number of different lenders, so you need to consider their options for repayment to ensure you will be able to repay the loan within the specified time period.
