Traditionally, cash advance loans were only for individuals who had steady jobs, as one of the most crucial requirements in getting approved for a cash advance is a constant supply of income. Although recently, lenders have finally extended cash advances to individuals that don’t meet up with the requirement of creating a constant supply of income from which the loan could be repaid. This’s because nowadays there are some lenders who offer cash advances to individuals that are unemployed. Nevertheless, although the cash advances that folks get is fairly like the cash advances that are made available to people that are unemployed, there are stark differences, that have become the reasons lenders offer these loans in the very first place.
Differences and similarities There are quite a few similarities between the cash advance loans which are offered to employed and women that are unemployed. Several of these include the point that both cash advances are both loans and short term loans can be approved in an extremely brief period of time. Nevertheless, you will find some main differences between the 2 loan products. One of these would be that the interest rates for the cash advances for individuals that are unemployed are often much higher that the typical fifteen % which are charged on regular cash advance loans. Another difference would be that the loan amounts that are given to people that are unemployed can also be significantly less than what employed folks are given.
The reason behind the differences in the rates as well as the loan amounts is that because lenders consider unemployed folks a greater risk. Nevertheless, it’s due to the high rates as well as the low loan amounts that have created these types of loan products popular among lenders, as they are able to prove to be lucrative compared to regular cash advance loans they provide employed folks. Given this, individuals that are unemployed that are thinking of getting these loan types should ensure they’ve carefully considered the advantages and disadvantages in getting a cash advance loan.