Traditionally, cash advance loans were only available for people who had steady jobs, as one of the most important requirements in getting approved for a cash advance is a steady source of income. Although in recent years, lenders have now extended cash advances to people who do not meet the requirement of having a steady source of income from which the loan can be repaid. This is because there are now some lenders who offer cash slick cash loan advances to unemployed people. However, although the cash advances that people get is somewhat similar to the cash advances that are made available to unemployed people, there are very stark differences, which have become the reasons why lenders offer these loans in the first place.
Similarities and differences
There are a number of similarities between the cash advance loans that are available to employed and unemployed people. Some of these include the fact that both cash advances are short-term loans and both loans can be approved in a very short period of time. However, there are some major differences between the two loan products. One of these is that the interest rates for the cash advances for unemployed people are usually higher that the usual 15% that are charged on regular cash advance loans. Another difference is that the loan amounts that are usually given to unemployed people are also significantly lower than what employed people are given.
The reason for the differences in the rates and the loan amounts is that because lenders consider unemployed people a higher risk. However, it is because of the high rates and the low loan amounts that have made these kinds of loan products very popular among lenders, as they can prove to be more profitable than regular cash advance loans they provide employed people. Given this, unemployed people who are thinking of getting these kind of loan should make sure that they have carefully considered the pros and cons in getting a cash advance loan.