The term "cash advance" used to exclusively define an option that a credit card holder had to withdraw money using their credit card in the same manner they would their automated teller machine (ATM) card. In some cases, they are also allowed to request for the cash advance through an over-the-counter transaction with a bank teller. Think of it as having access to instant cash loans and then paying it back once the credit card bill arrives. However, with the growing popularity of online cash advances, the definition of the terms has somehow expanded to include fast loan applications that are accomplished and approved online.
Online cash advances are basically payday loans that are applied for through the World Wide Web. This kind of loan service enables anyone who receives a paycheck or some monetary form of remuneration to see if they are qualified for instant cash loans given by an online lending company. Naturally, there are several requirements that need to be met before approval can be given, as is the case with any kind of loan application, but with this kind of cash advance, the process tends to not be as protracted as those for more conventional loans that are applied for in banks and other financial institutions.
The requirements set by each online loan company may differ, depending on the underwriting criteria they have. Some may insist that certain documentation be sent via facsimile (fax) and these documents will then be reviewed before approval is given for instant cash loans. These will often include proof of identification, an active checking account, proof of income, and a blank check. The number of documents may also vary as well, with some companies that offer online cash advances only asking for less than those mentioned while others may actually ask for more if they feel that the initial documents submitted were not sufficient for approval.
Fortunately for those who are in dire need of instant cash loans, there are an increasingly high number of online loan companies that do not require any documentation at all. For as long as the individual applying for the cash advance has a checking account into which the amount applied for can be deposited, they are often given approval. The interest rates for online cash advances differ but they are acknowledged as being higher than conventional loans because of the higher risk taken on by the online loan companies. Repayment is sometimes automatically withdrawn from the loaner's bank account but this, too, is not standardized.
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