Temporary or transient financial solutions in times of an acute and pressing need for money is known as a cash advance. This kind of financial backing is available with various charge card issuers and credit card entities and also via some banks. It enables users to obtain money immediately by either using their ATM card or getting cash via their counter of the bank/agency they are associated with as a customer. It is equivalent to purchasing cash with a credit card and is available only in urgent need of money or finances.
The online counterpart of Cash advance is a payday loan. Payday loan lenders provide short-term loans with exorbitantly high-interest rates on the principal amount. Moreover, there exists a limit on the amount one can borrow as payday loans offer a small amount, smaller than a regular personal loan. It is rarely the first choice of borrowers unless extreme conditions and need accompany it. Most people generally view it as a last resort, and you should opt for them cautiously because you need to repay them with the next paycheck. Cash advances of small amounts may be made available to people despite maintaining a poor credit history, and documents are not required to prove efficiency and a copy of their credit rating.
How do Cash Advances facilities function?
Cash advances can be made available to the person in need for not just large sums but also very meager amounts. One can avail such advances from ATM withdrawal facilities and for big amounts from an overdraft facility available at a bank or any other financial agency. However, for larger sums, the borrower’s financial condition and past records are taken into consideration before sanctioning the amount.
Lenders have developed certain eligibility criteria for the individuals looking for cash advances. But, apart from the below-slated conditions, lenders may have other qualifications as per their discretion which may vary from lender to lender.
The standard criteria include the following points –
i. A person seeking a cash advance must be at least 21 years old.
ii. The applicant must earn a regular income.
iii. He should have the financial capacity to repay the advance.
What are the types of Cash Advances available in Singapore?
A cash advance is available in the following types in the lending market.
a) Overdraft –
A customer can only avail of this facility from its current bank, linked to its existing transaction account. It enables the borrower to overdraw their account up to a certain limit. The bank holder and bank decide the specific advance limit. Multiple factors play a vital role in determining the amount that you can overdraw from your account. They include the relationship between the bank and account holder share and the account holder’s past track record. In an overdraft, borrowers are supposed to repay only the sum they borrow or overdraw and not the amount present in their account earlier. Other than this, you also have a credit card option and payday option available for cash advance requirements.
b) Online cash advances
One of the simplest and most popular modes to get cash advances is utilizing online cash advance services. The process is fully online and hence can be easily done from home. The basic procedure involves filling up an online application and providing read-only access to the lender of your credit file and transaction history. In fact, faxing the relevant documents is also not required. The next and the quickest step is approval, which hardly takes 60 seconds. Yes, you heard it right! It’s just a matter of 1 minute! Approval is granted via email, phone, or SMS if the applicant fulfills the credit provider’s eligibility criteria.
After the approval, you just have to e-sign the contract to receive the loan. As soon as you send your agreement to the credit provider’s contact via phone, SMS, or email, the required amount of money is transferred into the nominated bank account.
What is the process of procuring cash advances in Singapore?
The process of cash advances in Singapore alters depending on the type of advance you opt for your need. For instance, the cash advance process might only include visiting the nearby ATM and withdrawing cash or going to the nearby bank and withdrawing over the counter or transferring money if you use a credit card.
The process is naturally different in case you opt for an overdraft facility or a payday loan.
Borrowers must take note of some crucial pointers irrespective of the method of cash advance they choose. The first and foremost factor is a Credit check. In such cases of cash advances and loans, the credit provider heavily relies on the credit score and previous transaction history to decide the applicant’s eligibility. The credit score assures Leander that the applicant will repay the amount in the required time without any issues. In some cases, the lender might not check credit, especially in online cash advance facilities. However, even in such instances, documentation like bank statements is required to prove that the applicant will repay the borrowed money.
The other important points become document submission and employment verification. Both are highly important. To apply for any cash advance or loan, the applicant has to provide corroborative proof of a regular income to assure repayment of the dues. Hence, job verification may be required. For online cash advances services, the process is fully electronic. The self-attested soft copies of documents have to be uploaded online.
Simplified Amenity for Cash Advances in Singapore with OT Credit Services!
One can obtain cash advances in Singapore effortlessly through virtual avenues. This form is convenient, but at the same time, it can be tricky as well. But we, here at Tradition Credit, have a very efficient and experienced team to support you. Our company is a reliable licensed moneylender in Singapore. We provide cash advances at the most reasonable interest rates. Customer convenience and financial security are our top priority. So what are you waiting for, Singaporeans? Check out our website today and be free from finance-related worries.