June 6th, 2019
So, maybe you find yourself needing some extra cash. You’ve heard about cash advances, but you’re not too familiar with what they entail or the companies running the business. Perhaps you’ve come across a few places online where you get cash advance loans, like National Cash Advance. The website and the reviews seem to check out, but you’re still wondering how much it’ll cost you; if there’s any fine print, and if there are any (better) alternative solutions out there.
Luckily, we’ve put together a quick guide that tells you everything you need to know about cash advance loans from National Cash Advance. Let’s see how it compares to other options out there. Like all financially-related decisions, it’s important to do research before getting yourself involved with something that could have long-lasting negative consequences.
First of all, what is National Cash Advance?
National Cash Advance is a payday advance company that offers multiple types of services to its customers, including payday loans, title loans, installment loans, Visa prepaid cards, and MoneyGram.
When looking at their FAQs, they seem to be dodging some of the most important questions regarding their loan services. In addition, it is also difficult to find their ‘typical rates’ by state.
After selecting a state, it appears as if many of the listed states don’t have a National Cash Advance location. For the states that do, the information provided is only the bare minimum of the cash advance amounts available for a 14-day term or 30-day term with the corresponding loan fee.
So, what about rollover fees?
For those of you who aren’t sure what rollover fees are, they are fees tied with the option to extend your loan due date if you are unable to pay back on time. Information regarding rollover fees does not seem to be provided directly on their FAQ. Instead, they mention that the ability to renew an advance depends upon the state regulations, and provides you with the option to reach out to a local branch. A bit shady, right?
For the information that is provided, here is a little bit about the loan services according to their website:
Payday Loans
To receive a payday loan from National Cash Advance, customers must find an in-store location where they must write a check for the loan (plus any additional fees). In exchange, they will receive their advance in cash, on the spot. Money is expected to be returned in cash on the due date, and on that same day, customers will have their personal check returned.
As mentioned above, there seems to be little information regarding rollover fees or what could happen to you if you are unable to pay back your loan amount on time. While this information is usually in the fine print, not listing it directly may imply how fees can easily become predatory from payday advance companies like National Cash Advance.
What are the typical rollover fees for other payday loan companies?
Although rollover fees are not directly dished out by National Cash Advance, these are common practices for other companies, depending on your state. It’s important to note that the option to roll over your due date is not allowed in all states, as some state regulations do not support this practice, believing it could lead customers into a spiraling cycle of debt. According to a study by the Consumer Finance Protection Bureau (CFPB), 80% of all loans are “rolled over or followed by another loan within 14 days.” Additionally, rollover fees typically cost around $45 – and this amount is expected to be paid with the initial loan amount + fees agreed upon.
Title Loans
Title…what? For those of you who aren’t as familiar with these types of cash advance loans, they’re actually quite similar to regular payday loans. Title loans are given with a 30-day payback period in exchange for the title to your car. The value of your vehicle determines the loan amount. (These options are usually chosen by customers because they do not require credit checks.)
In the case for National Cash Advance, you’re still able to keep and drive your car while you pay back your loan. However, it is not clear what the consequences would be if you were unable to pay back your loan on time. Would National Cash Advance keep your car? Would there be additional fees? Unfortunately, after deep digging, these questions seem to be hidden in the fine print. Typically, for other companies, there is usually a rollover fee, and if you still cannot pay back, your car can be repossessed or even shut down.
Installment Loans
This common type of loan involves receiving a loan that is repaid over a set amount of time using scheduled payments. These loans are usually paid monthly but can be arranged with the lender. While these payments are consistent every month and allow you to budget your payment, your interest rate will be determined based on your credit. So, if you have a so-so credit score, you may end up paying a larger interest rate than borrowers with higher credit scores.
To get a general idea, typical lending company interest rates can range from 6% to 36%, spanning from two weeks to 30 years. Lenders with predatory practices tend to target customers with credit scores under 630, offering fast-cash installment loans with high borrowing fees and additional hidden fees.
So…what are the other options out there?
Good question. While payday loans, title loans, and installment loans may seem like a good idea to get fast cash, they can come with heavy fees (especially if you decide to roll them over). As mentioned previously, pricing differs from state to state, as do the fees. But maybe you’re wondering if there’s a way to get a quick advance at a cheaper cost? Maybe one where you can avoid the credit checks and giving out your SSN? Well, you’ll be happy to know there are indeed a few alternative solutions to those costly payday loan company businesses – right on your phone!
Introducing, Brigit
One of these alternative solutions is an app called Brigit. Not only are you not required to go in-store to get cash, but the approval process takes under 60 seconds (compared to a payday loan’s application process of ~15 minutes), and you are not required to give out your SSN! Unlike cash advance loans that may not respect your privacy, Brigit only asks information that’s required to approve you and secures your personal information with the same 256-bit encryption that banks use.
While advances can range from $80-$250, there are no hidden fees, no delivery fees, 0% interest and 0 tips required. Instead of the costly $30+ to borrow an advance, you’re only charged $9.99/month – with the ability to get advances between paychecks. The best part is, if you need a little extra time to repay, you can extend your due date (up to 3 times) at no additional cost.
Compared to payday loans from companies like National Cash advance, you won’t be charged a rollover fee if you are running a bit short to repay in a timely manner.
While cash advance loans can be beneficial for some, they can easily turn predatory when you don’t read the fine print or see the information regarding rollover or hidden fees. Regardless of whichever solution you choose, we always encourage you and others to do research beforehand so that you can look out for yourself and your financial wellness.
