No breakthrough in the loan industry has positively impacted modern American society in as widespread a manner and as significantly as the cash advance loan. Also known as a check cash advance, a no credit cash advance, and a bad credit loan, this fast cash short-term loan has revolutionized borrowing and has posted unparalleled growth over the last several years. Initially, small independent stores that specialized in check cashing services were issuing these quick cash loans. Today, it is primarily multi-line creditors providing a host of banking services such as money orders and bill payment, as well as large regional or national creditors offering only cash advance loans that serve as a source of emergency cash. By entering into a rent-a-charter contract or a brokering arrangement with a cash advance company in states banning fast cash and by extending capital to those lenders, commercial banks have played an increasingly pivotal role in the industry. Currently, the cash advance payday loan is authorized in 36 states.
Catapulting the bad credit cash advance loan to popularity is the reality that 1) most financial institutions restrict loans to consumers with good credit and 2) traditional lenders do not usually underwrite low-cost, unsecured personal loans of short duration. Attesting to the continuing appeal of the cash loan are the following features:
1. Easy-to-meet criteria and straightforward qualification terms,
2. waiver of the credit check requirement and non-disqualification of applicants with bad credit or no credit at all,
3. prompt approval of the funds requested,
4. efficiency and speed of the funds' transfer to the borrower's bank account (overnight in most cases), and
5. the opportunity to utilize the loan for any desired purpose.
At its inception, the bad credit personal loan was only available through brick-and-mortar shops. Since, the no credit check cash advance has evolved, principally owing to the advent of the internet. Consumers now have the luxury of applying for fast cash from their own home and performing the entire transaction with the click of a mouse. Due to the fact that the average cash advance company today is national in scope, an online application can be approved expeditiously regardless of where a prospective borrower lives. The electronic application process is convenient and avoids customers long waiting periods. As with a conventional payday loan, an online cash loan requires no credit check. A consumer can either fill the application online or fax it. Processing of the online application is completed in seconds, and approval is simple and quick. The funds are directly deposited into the borrower's checking account.
The introduction of the cash loan into the electronic medium also ushered in new consumer protections. Fast cash stores operating on the world wide web offer their online customers both security and confidentiality. The personal and financial data entered or submitted by cash advance applicants is safeguarded by a 128-bit Secure Socket Layer (SSL) technology, which encrypts the information transmitted. Another innovation contributing to the evolution of cash advance loans was the paper-less option. Lenders began offering the no fax
payday cash advance, which eliminated the need for borrowers to fax their documents and further simplified the application process. The time-saving features of a no fax payday loan is demonstrated by the unparalleled speed in which an application is completed and processed. In conclusion, the strides effectuated by the cash advance industry have translated into an increased efficiency, convenience, speed and security for the consumer.