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Check Advance vs Traditional Bank Loan

A check advance has grown in popularity since its induction many years ago. Check advances began as a way to get a small, short-term loan offered at banks or small grocery stores in the United States, but now they are their own industry. In the beginning, a check advance was available to consumers to get some much-needed money by agreeing to use their next paycheck to pay off the loan. Word quickly spread and they became wildly popular and today you can take out a check advance from any location in the world, as long as you have access to the Internet.

A check advance is not like a traditional loan. This type of short-term loan is very convenient, easy to apply for and is widely available. With a traditional loan, you are required to go to your local bank, wait in line and then answer many questions from a loan officer and fill out countless forms and applications. A check advance can be taken out online and there are no questions asked regarding what you plan to do with the money. Instead you only need to supply the loan company with some basic information such as your employment status, salary received and so on. Another difference is the fact that a check advance is normally provided through a bank transfer shortly after being approved. Many banks on the other hand require that you wait several days or more before a check is mailed to you.

You are probably aware of the fact that many people say that taking out a check advance should only be done as a last resort. Most of these short term loans have very high interest rates compared to credit cards which leads many financial experts to advice only using them when absolutely necessary. However, many people today live paycheck to paycheck which often leads to having difficulty in paying bills on time. And, quite often an unexpected expense can pop up out of no where, leaving people sorely short of money. Car repairs, health care expenses, and needing money to take an emergency trip are some of the most common reasons people find themselves in a bind and short of money.

A check advance can be a God-send when your car has broken down and you have no other way to get to and from work. Or, if you become ill and need to purchase some medicine and do not have insurance coverage, using a check advance in order to get the money is totally justifiable as you certainly cannot ignore your health just because you do not have any available cash. However, if you are thinking of taking out a check advance just because you feel like shopping for some luxury items that you do not need, you may be getting yourself in over your head.