Before getting into the details of whether a cash advance is different from a payday loan, let us check what a payday loan is. A payday loan is a short-term financial tool that you can secure easily if you have a job and a bank account. In other words, the only criterion for getting a payday loan is the fact that you are entitled to a future paycheck. Payday loans are effective financial instruments that can help you tide over a sudden loss of income or can bail you out when you need additional funds for an unforeseen exigency. By availing of a payday loan, you can also steer clear of those pawn shops or other such establishments offering loans at exorbitant interest rates.
A cash advance can help you during the hours of emergency as it is given out within a few hours of your application. For securing a cash advance, you will need to confirm the fact that you are employed and have a checking account. Apart from this, you may be asked to submit a counterfoil of the last months’ salary and a bank check through fax. If you file the application for your cash advance online, it will be processed pretty quickly. It can be a matter of only a few minutes or some hours at most to get your money.
A payday loan is often called a cash advance, in fact they are used interchangeably.
A payday loan is a unsecured loan given to a person where in most cases they return the loan plus fee on their next payday.
A cash advance is also an unsecured cash loan that is returned as soon as the receiver gets their next pay.
So essentially both are same.
Everything is online. Once approved the loan amount will be credited to the applicant’s account. On the date of the next payday, the principal + interest + fees if any will be debited from the account.