Emergency loans are a valuable tool for borrowers that need money quickly for unexpected emergencies. There are different types of emergency loans and lenders, but one choice is Advance America. Advance America is a financial services provider that offers multiple financial products in various states nationwide. Interested borrowers could apply for a high-cost cash advance loan, such as a Payday loan.
Advance America provides online loans, although they also have store locations throughout the United States. This lender may seem ideal if you need financial relief now due to an overdrawn bank account or a malfunctioning vehicle.
Online loans are just one option and it’s in your best interest to learn more about the different types available. Increasing your financial literacy ensures you know how to compare loan offers to pick the best borrowing option. Keep reading to learn how Advance America works and compares to CreditNinja.
Finding the Right Personal Loan
A personal loan is a short to long-term loan that borrowers pay off through monthly installments. There is no rush to pay off the total loan amount in one lump sum. Personal loans can be a good emergency loan option because the repayment terms are customizable. But how can you find the right personal loan for your current situation? Below is more information on these loans to help you find a great option.
Multiple lenders offer personal loans online and in-store. Interested borrowers can apply through a bank, credit union, or online lender. Online personal loans may be the same as in-store options but offer more conveniences. Online loans help you avoid the hassle of traveling to a brick and mortar and waiting in line. Consumers can start and complete the loan application process from their mobile phones or computers. The same documentation is usually required, but online borrowers can submit photos of their paperwork for verification.
The exact documents required vary by lender, but generally, you will need the following:
- Photo ID: Financial institutions will require a government-issued photo ID to verify your identity. Most lenders accept a state identification card, driver’s license, or passport.
- Personally Identifiable Information: You must provide Personally Identifiable Information (PII) to a lender in order to borrow money. A Social Security number (SSN) and Individual Taxpayer Identification Number (ITIN) are two common examples of PII.
- Proof of Income: Qualification for a loan requires proof of a reliable source of income to a lender. Most borrowers prove they have steady income with paycheck stubs. Still, you may be able to provide bank statements, tax returns, invoices, or government award letters.
- Proof of Address: To prove you reside at your current address, you can typically provide a credit card statement, utility bill, lease agreement, voter registration card, etc.
- References: Some lenders may ask for personal or professional references.
Remember that some financial institutions offer secured or unsecured loans when looking for a personal loan. An unsecured loan does not require collateral, so the qualification requirements are generally more strict. In contrast, a secured loan requires a valuable asset from the borrower.
Using collateral lowers the risk for the lender. Lenders may offer more lenient qualification requirements, which may help low-credit borrowers get fast approval.
The type of collateral you can use to secure a loan varies by lender. Still, most borrowers use cash in a savings account, certificates of deposit, car titles, house titles, etc. Lenders offering secured loans will either place a lien on the asset or keep it during repayment. For example, if you use a car title as collateral, the lender may place their name on the certificate of title. Once you repay the personal loan in full, the lien is removed, and you regain full possession of the vehicle.
Using collateral to get a secured loan may seem convenient for borrowers that struggle to get loan offers. However, secured loans are very risky for the borrower. If financial issues arise and repayment cannot continue, you could lose any personal property securing the loan. Suppose you secure a loan with the only vehicle in your household and default due to unforeseen circumstances. In that case, you can lose your only source of reliable transportation. Remember, many in-store and online lenders are willing to approve low-credit borrowers for unsecured personal installment loans.
If you are looking for a personal loan online, remember that it’s essential to stay vigilant of potential scammers. There are plenty of reputable online lenders, but scammers fraudulently pose as lenders to gain access to sensitive personal information and financial accounts. But knowing the red flags to watch out for can help you avoid falling for a scam and becoming a victim of identity theft.
Look out for the following warning signs when shopping around for an online personal loan:
- Lenders that offer vague repayment loan details that make little sense.
- Guarantees of loan approval. Instant approval is possible, but legitimate lenders cannot guarantee you will qualify.
- Lack of customer service information. Reputable lenders should have a number or email address available for inquiries.
- Harassing behavior such as unrelenting phone calls, emails, or text messages.
- Upfront fees that you must pay through questionable payment methods.
Once you find a legitimate online lender, pay special attention to the interest rates, fees, and loan amounts. Even if you need emergency financial relief as soon as today, it’s never a good idea to settle for the first loan offer you get. Comparing multiple loan offers may be the best way to get the most cost-saving loan option.
Remember it’s critical to avoid making any late loan payments, no matter what lender you work with. Over time, you may notice a positive effect on your credit score due to continuous on-time payments. Most financial institutions report loan payments to the three major credit bureaus: Equifax, Experian, and TransUnion. Reports are typically made once a month, although lenders may report more or less often. The dates of payments are recorded on one or multiple credit reports.
A borrower’s payment history is the most important factor for credit score calculation. It counts for 35% of a FICO score, the credit score most lenders use to make approval decisions. A reliable payment history helps you look financially responsible to lenders. You may get a higher credit score to access the lowest interest rates and maximum loan amounts in time.
Loans like Advance America: What You Need To Know
Advance America is a financial services company partnered with Fortuna Credit. Advance America offers multiple loan options to eligible consumers in various states throughout the nation. Borrowers could apply for payday loans, installment loans, title loans, and lines of credit. In addition, Advance America offers bill pay services and check cashing services.
Getting a loan through Advance America is quick because they offer a fast application process and lenient credit requirements. Applicants do not need good credit to get an instant approval decision for financial products worth up to $25,000. Applicants that get approval by morning can typically expect money in their active checking account by the end of the day.
If you’re interested in applying for a loan with Advance America, learn more about how they operate and what loan terms they offer.
How Do They Work?
Advance America works differently depending on the type of loan you want to get. Each loan option has different qualification requirements and processes.
Suppose you qualify to get an Advance America loan. In that case, you will get a loan offer with your amount, interest rate, and finance charges. Interest rates and finance charges are only available to consumers who submit a loan application because they depend on state regulations and the loan term length.
Keep reading to learn how each type of loan works to determine which one would benefit your current lifestyle.
Payday Loans
Advance America offers payday loans to eligible borrowers. A payday loan, also known as a payday advance or cash advance, is a short-term loan. A good credit score is unnecessary for approval because income is the main qualifying factor. If you have a reliable source of income, you could potentially get fast money in your checking or savings account.
You should know that while payday loans are convenient, many financial experts advise consumers against using them due to predatory loan terms. Payday loans are one-payment loans that borrowers must usually repay in full within two to four weeks. But unfortunately, many borrowers struggle to repay the entire loan plus high-interest fees within a short timeframe.
When a payday loan borrower cannot repay the total outstanding debt within the allotted time, the loan may automatically renew for an additional two to four weeks. The cost of renewal, also known as a rollover, can significantly increase the total cost of the payday loan.
Keep in mind that having bad credit does not mean you have to settle for a high-cost loan option such as a payday loan. There are alternative options to consider, such as personal installment loans.
Installment Loans
An installment loan could give eligible borrowers thousands of dollars in fast financial relief. Borrowers can get a significant lump sum of money deposited into their bank account for use on unexpected emergency expenses. Lenders get paid through monthly payments over a few months or years.
Installment loans generally have fixed interest rates, although some financial institutions also offer variable rates. A fixed interest rate is unchanging, so a borrower pays the same amount every month until the loan is paid back in full. Fixed rates are ideal for borrowers that want a predictable payment schedule.
In contrast, variable rates fluctuate monthly, quarterly, or annually. Variable rates are also known as floating or adjustable rates because they depend on a benchmark interest rate or index. Variable rates can potentially be lower than fixed rates. Still, they are risky because borrowers cannot predict if or when rates will increase or decrease. A variable-rate loan may not be a good option for borrowers with limited funds.
Lenders that offer installment loans use income and a person’s credit history to make approval decisions. Most lenders have a minimum credit score requirement. Although some lenders offer bad credit loans, you may not get approval if your score does not meet a specific benchmark. And if you do get approval, ask about the interest rate because many lenders charge high rates to low-credit borrowers. Take time to compare interest rates, even if you desperately need a loan for bad credit.
Auto Title Loans
An auto title loan can provide speedy cash to eligible borrowers who own a vehicle. Car title loans are secured loans that require collateral. During repayment, the lender keeps a lien on the car title to own the car temporarily. Once a borrower pays off the title loan, they get the lien-free certificate of title back.
Car title loans are convenient because they typically provide thousands of dollars, and good credit scores are not required. Qualification for a title loan depends almost entirely on the market value of a car and the amount of equity it has. This type of loan seems like a great deal for consumers that struggle to get loan offers, but there are financial risks.
Auto title loans typically have very high-interest rates despite the use of collateral. The reason is that while lenders can access an asset, they prefer to get cash back. When a car title loan borrower cannot repay the loan, the lender has the right to repossess the vehicle and sell it at an auction to regain the outstanding balance. This time-consuming process also costs the lender money. Many title loan lenders charge incredibly high-interest rates to compensate for any potential risk.
Advance America allows borrowers to continue driving their cars while they make monthly loan payments. However, title loans are high-cost loans that may be risky for borrowers.
Lines of Credit
Advance America offers a flexible line of credit for eligible borrowers. Lines of credit are similar to credit cards. Borrowers can borrow funds, make payments, and then borrow again up to their approved credit limit.
Eligibility for a line of credit depends on a borrower’s income, existing debt, credit score, and other factors. However, Advance America states that a perfect credit score is not necessary for approval. Hence, it may be possible to qualify with a bad credit score. A line of credit can help borrowers get through a financial crisis, but it can cost a lot of money due to hidden fees.
Similar to credit cards, lines of credit have a lot of fees and high-interest rates. Interest fees start accumulating immediately after use. In addition, borrowers may have to pay maintenance or annual fees to the financial institution. Borrowers that take out maximum loan amounts may end up paying a substantial amount in interest fees.
Who Are They For?
Like Ace Cash Express, Advance America advertises loans for people who typically struggle to get approval for loans. A high credit score is unnecessary to qualify for a loan with Advance America. The qualification requirements are lenient so more people can access speedy cash for emergencies like medical bills, car repairs, unexpected travel, and more.
Advance America offers different loan products for different needs. Borrowers can get long or short-term loans depending on their residence and income. Short-term loans, such as payday loans, are the most common loan that consumers get. Extending the repayment length of a short-term loan is possible, but doing so may significantly increase the cost of the loan.
What Can I Expect if I Get One?
Eligible applicants may get money from an Advance America loan the same day they apply. Same-day funding is possible for applications approved before 10:30 AM Eastern Time. Approvals after that time take at least one business day.
The repayment process for Advance America depends on the type of loan a borrower gets and the repayment option chosen. However, many borrowers have monthly payments automatically withdrawn from their bank accounts through ACH (Automated Clearing House). However, borrowers have the choice to make payments over the phone or through their online accounts.
Borrowers need to make monthly payments on time. Some people make additional payments to speed up the payoff date to save on interest charges. Unfortunately, it’s not possible for borrowers to repay their Advance America loans early. Advance America does not state that they allow early payments, so you may have to follow a strict repayment schedule or face prepayment penalties.
CreditNinja: How Does it Compare?
CreditNinja is a reputable direct lender that offers fast financial solutions similar to sites like Advance America. However, CreditNinja specializes in providing affordable and convenient online personal installment loans.
Unlike Advance America, CreditNinja does not offer cash advances, title loans, or lines of credit. Instead, borrowers are able to apply for online personal loans with bad credit. While other financial institutions place heavy importance on a borrower’s credit score, we consider other factors. We analyze your entire financial history to better understand your current budget and financial potential.
CreditNinja’s Installment Loans
CreditNinja offers online personal installment loans in various states throughout the United States. The loan amounts generally range from a few hundred dollars to a couple thousand. However, it’s a good idea to inquire since your resident state can affect the minimum and maximum loan amounts. You can apply for the minimum loan amount if you only need to borrow a small sum.
Depending on the loan amount and your repayment preferences, the repayment length can extend a few months or years. But remember that borrowing money for extended periods may cost more in the long run. However, you can reduce the total loan cost by repaying the personal loan early.
How Does CreditNinja Stand Out?
Some of the benefits of personal installment loans with CreditNinja is that you can pay off your loan early and loan amounts and repayment lengths range greatly. To help you choose the best loan terms for your current financial situation, consider how much money you need and how much time you want for repayment.
A short repayment schedule can help you avoid a long-term financial contract, but you may have to pay higher monthly payments. On the other hand, an extended repayment length can help you get smaller loan payments. However, you may end up paying additional interest fees. Ask yourself what you can afford to pay monthly to determine which repayment length is most suitable for your current budget.
Suppose you take out a personal loan with a long-term repayment schedule but want to pay off the borrowed amount sooner. In that case, you can make more payments or increase your monthly pay. CreditNinja offers flexible repayment schedules with no prepayment penalties. Other lenders charge fees for early repayment, but you can pay off your personal loan whenever you want by working with CreditNinja.
A borrower’s credit score directly impacts the interest rate for a personal loan. However, you may still get competitive rates despite a bad credit score with CreditNinja. Interested applicants can inquire within minutes to get an instant pre-qualification decision. And if you are eligible for loan approval, you may get money the same business day.*
Who Should Pick CreditNinja?
CreditNinja is an ideal loan option for people that have poor credit scores. An excellent credit history is not required to get speedy cash with reasonable loan terms. CreditNinja considers multiple factors, such as the borrower’s income, payment history, and more.
*Applications approved before 10:30 a.m. CT Monday-Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case the loan, if approved, will be funded the business day after such additional verification is completed.
References:
Easy and Fast Online Loans│Advance America
Installment Loans│Advance America
