Interest Rates

Before actually getting into a cash advance loan transaction, it is very important to know about the most important things involved in a cash advance loan. This is to keep yourself from falling into the trap of fake or abusive finance companies or agents. These information can also be taken into consideration when deciding whether to get a cash advance or not.

The price of Convenience.

In cash advance loans, as well as in other types of loans, one of the most important things that you would be dealing with is the interest. Cash advances are relatively convenient, fast and easy to acquire. It is because they are short-term, unsecured loans that do not require collaterals, credit background checks, and financial status reviews. With only your age (borrower should be at least 18 years old), checking account, and amount of salary to consider, cash advances are undeniably among the fastest solutions to money emergencies.

However, the price of this speed and convenience is relatively high. Interest rates, along with other fees and penalties, are set to make the borrower carry the risks of the loan. Cash advances are usually set for a period of about two weeks to 30 days. Should you fail to pay the loan on the deadline of the payment, you are sure to face bigger debt.

Interest rates for cash advance loans usually depend on the amount borrowed. In Canada, the usual range for cash advances that finance companies usually offer is from $100 to $1,000. The interest rate usually ranges from about $10 to about $30 for every $100 borrowed. Courtesy of the Criminal Code of Canada, finance companies cannot charge more than 60% per year for the interest rate. Otherwise, it would be considered a criminal offense.