It can happen to anyone of us at anytime, we are cruising along financially and all seems well when we are suddenly blind-sided by an unexpected bill. This bill can come in many forms, a higher utility bill, an at-fault auto accident, or even a medical emergency. These situations almost always catch us off guard and require individuals to have great liquidity in their finances in order to cover them. Unfortunately a lot of people find themselves stuck between a rock and a hard place when these situations occur and need a quick way out. Cash advances, or payday loans, are designed for just such a situation in which individuals need cash fast. Those considering a cash advance in Virginia Beach should read up on the laws that govern the process in their state.
A cash advance can come in a variety of forms, each of which has different rules and regulations. Cash advance laws also differ from state to state. Some of the most common cash advances include the following:
• Cash advance
• Title loan
• Payday/Paycheck loan
• Credit card cash advance
The most popular among these is the cash advance. A typical cash advance consists of a borrower writing a check to a lender for the amount of a loan plus fees and taxes. The lender then holds on to the check for the determined amount of time under the loan agreement. When the term expires, the lender cashes the check to complete the transaction. In some states, lenders are allowed to grant roll-overs or extensions to borrowers in order to give them more time to get money in their account to cover the check written to the lender. Failure to payback a cash advance can have a devastating impact on an individual's credit.
Any individual considering a cash advance in Virginia Beach should make sure they are aware of all the laws that regulate the cash advance industry in the state of Virginia. Under Virginia law, lenders are required to not only divulge up front all the fees and charges that apply to cash advances in Virginia Beach, but they are also required to inform borrowers that cash advances are not designed to help meet long term financial needs. Other laws that apply to cash advances in Virginia Beach include:
• Cash Advances may not exceed $500 at one time
• Loan terms may not extend beyond seven days
• Lenders may not charge fees in excess of 15% of the value of the loan
• Borrowers are permitted to make partial payments in paying back their loan
• Roll-overs and extensions are prohibited in Virginia
Cash advances in Virginia Beach can help individuals make ends meet when unexpected bills catch people off guard. It is important to remember however that cash advances should only be used to help cover emergency scenarios and are not a reliable source of long term financial success. With that being said, a cash advance is often an easier process to complete compared to small loans from banks and credit unions, and are an excellent alternative for those with poor credit.