The company offers an online lending network that allows consumers to request and receive cash advance loans and payday loans. However, these loans often come with high fees and the potential to get stuck in a debt cycle. Cash advance loans can have loan rates that equal APR in the 300% to 500% range, but they can be even higher. It is important to be aware of the risks associated with these short-term loans. DFI has reported cases of apparent scams by people claiming to represent Advance America, Cash America, Cash Advance America, Cash Advance USA, Speedy Cash and Advance America Payday Loans.
Several consumers were contacted by people who said they were collecting a debt with Cash Advance America, Advance America or Speedy Cash. The common theme among those who have had positive experiences is gratitude for the ability to secure rapid funding, despite the high rates charged for short-term cash advance loans. The biggest disadvantage of a cash advance loan is its extremely high APR, which can easily reach three or even four digits, depending on the loan and the lender. This makes them one of the most expensive credit products on the market. We also found a warning issued by the Washington State Department of Financial Institutions regarding a Cash Advance USA scam. If you need a loan for a larger amount, a personal installment loan may be a better option than a short-term cash advance loan.
The rate may not be as apparent when you apply for a cash advance loan, as the loan costs are usually advertised as a fixed dollar amount. Before applying for any type of short-term loan, it is important to consider all your options carefully. Once you have been approved for a cash advance or short-term loan, you will receive the funds as soon as the next business day.
