Cheap Cash Advance Loans / Fees : Bad Credit Advisor

Cheap Cash Advance Loans / Fees

While cash advance loans cannot be cheap by definition and are normally given at very steep fees ... there are some cash advance online shops that occasionally offer 50% discount loan fees or even no fee loans (free advance loans) to first time customers. These loans require you to have a job and a checking account or a savings account with the direct deposit option set up, and most won't require you to fax anything. These days, if you don't have a job, you're pretty much screwed from getting any cheap cash advance. Also, from January 1st, 2010, some states have new laws limiting the number of cash loans per year to 2 only, so in those states you'll be refused a loan if applying for a third time within the same year. We've listed some of the cheapest cash advance loans below, but before you try to get one you should be aware of the following:

- most online loan shops will charge full fees for the original loan term regardless if you paid the loan off earlier. Also beware of early payoff penalties.
- some may charge origination fees and setup fees.
- the shorter the term the higher the APR
- but APR (the annual percentage rate) can be misleading - what you really care about is the fees $ amount per every $100 borrowed.
- typical cash advance loan charges you a flat fee of $20, $25, or $30 per $100 borrowed. But there are some that offer discount fees - basically anything under $10 is cheap.
- all online cash advance loan places have different fee structures. Need to look carefully into details to get a clear idea on the amount of fees.

Cheap cash advance loans are non existent, let's make it clear. Cash advance loans are the most ferocious, unfavorable loans you can get. Forget about getting them cheap - getting them cheaper maybe possible if you take your time and compare many loans. We've done just that for you. Here's our comparison of the 5 online cash advance loans. Please use it if you absolutely must get one - better loan money from friends and relatives if you can. Just look what you're getting yourself into: on average, to pay an advance back, you will have to spend 30% more of what you borrowed only two weeks ago... no wonder large percent of cash loans is not being paid off.

Comparing loan fees / costs can be cumbersome especially that many online places are not revealing them. We prefer to deal with the online outfits that make their fees public. Here's the list of the cheapest cash advance loans we've found online. Please be aware that the loan fees will vary depending on the amount you borrow and the duration of the advance. In general, cash loans are expensive to begin with - do not expect to find them to be very cheap.

For the purpose of this comparison, we consider advances of $500 borrowed for 14 days, in the state of IL. As you can see the fees range from $8.75 to $30 per $100 borrowed. Even with the cheapest advance, it is very expensive to repay a cash loan. Though the fees may vary from state to state, this comparison gives you a pretty good idea of what costs to expect when getting a cash advance. Here's the list:

Cheap Cash Advance Loan #1 - DiscountAdvances
-Fees: $17.50 per $100 borrowed (regular)
-Fees for new customers are 50% off (only for the 14-day term): only $8.75 per $100 borrowed.
-This appears to be the cheapest cash loan - for new loan customers, as they offer 50% off of their already low fees! But again these low fees are only for 14-day loan term.
-no penalty for early payoffs.

Cheap Cash Advance Loan #2 - MyCashNow
-Fees: $18.62 per $100 borrowed (regular).
-For new customers, fees are 50% off. That is only $9.31 for every $100 (APR) borrowed (only for the 14-day term). So it's better to get a 14-day loan at this online shop.
-what I like about them is that they say on their site: "If you need help determining the fee and rate that works best for you, our friendly staff of professionally trained customer service representatives is standing by."
-the 14-day loan fees are cheap. But they appear to more than double for 30-day loan. So watch out.

Cheap Cash Advance Loan #3 - PayDayMax
(this appears to be just another interface to the same business that MyCashNow is to. But they display better fee charts)
-Fees: $9.31 per $100 borrowed, for new customers (only for the 14-day term).
-This rate does not apply to extensions .

Cheap Cash Advance Loan #4 - PayDayOne
-Fees: $17.50 per $100 borrowed (check website for current rates).
-No origination fees.
-No setup fees.
-No pro-rated fees - only pay for the number of days you keep your loan. For instance, if you paid your loan off in full in two weeks, you would pay $17.50 in fees per $100 borrowed (456.25% APR). For $500 borrowed, it'll be $87.50. What is shown on that red table is if you pay 12 payments then you'll encounter over $727 in fees. So here's the catch: if you pay it off within the loan term then this loan is cheap, otherwise it becomes very expensive. You can choose to make monthly payments or pay off your loan at any time.

Cheap Cash Advance Loan #5 - EZPayDayCash
-Fees: $30.00 per $100 borrowed (check website for current rates).
-The fees are the same ($150 per $500 borrowed) whether it's a 14-day loan or a 30-day loan. So it may be better to borrow for longer term so you'll have more time to pay it off.
-To get a 30-day loan you need to borrow 30 days prior to your next pay day.

(You also got to realize that some sites are actual lenders of the cash advances and other provide a lender matching service - but for online shoppers it should be transparent.
If you choose to apply for a loan through lender matching service and they do not reveal their fees - in such case you won't know what costs will you endure up until you're actually done with your loan application and the match is found. At that point you should be presented with the cost of your loan and given an opportunity to refuse it.)

Wed Jan 20, 2010 11:01PM by Tony | More in Personal Finance | Comments (0)

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