The History Of Cash Advance Loan Lending In South Carolina

Cash advance lending in South Carolina is a relatively ... read more

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Visit a Cash Advance Lender When You're Strapped

For centuries, South Carolinians wanting small loans have only had two options; getting the funds from a family member or friend or by making application to a traditional bank. The problem was that banks rarely, if ever, want to deal with such minuscule amounts. Now people in South Carolina who find themselves several hundred dollars or less short in between paydays now have another option; check advance lenders. This industry serves a special niche market of people who simply need short-term loans that do not exceed thirty days. This form of lending, also known as payday loans, is perfect for people who have emergencies arise that they do not have the funds to handle.

How Cash Advance Lenders Work

Cash advance loans, which are also known as payday loans and short-term loans, offer borrowers opportunities to gain quick cash for emergency bills without putting down collateral or even going through a formal loan negotiation process found at a traditional bank. In the financial world this is known as an unsecured loan, the same variety as you have with credit cards. Usually, loans are only made in small amounts—ranging from $50 to $1,500. The cash advance lender then charge a finance fee that's usually in the range of 15 to 20 percent of the amount borrowed. Monies must be remitted at the end of a one to three-week period, depending on the cash advance lender.

Here’s how the cash advance process works: As long as you are over age 18, you will give the South Carolina cash advance lender of your choice some basic information—proof of job, contact information, and your personal check that's postdated to the end of the term of the loan. This date will coincide with the borrower's payday so that he or she has enough money in their account to satisfy the loan and the accompanying interest. Once the end of the loan term arrives, the borrower can pay off the loan in cash and void the check, allow the creditor to deposit the check, or seek to refinance the loan.

If you find a need to refinance your original South Carolina cash advance lender loan, there likely will be a service charge associated with the move. For example, if you borrow $100 for a $20 fee, and you have to pay $20 additional to extend the term of the loan, you could end up paying $40 or more for the privilege of getting that $100 in advance.

You can find both online and "brick and mortar" centers in South Carolina for cash advance loans. Many cash advance loan businesses are located near the North Carolina and Georgia state lines in South Carolina in order to take advantage of the customers in those states’ markets. The ideas is to shop around to find a relatively good rate, and then budget to make sure you can pay back the cash advance loan at the end of your term to avoid the accrual of any more interest.

South Carolina Title Loan Lenders

Automobile title loans in South Carolina are another variation of the cash advance industry. If you own your own automobile, auto title loans can be a source of funds during a cash crunch.

Most South Carolina automobile title loan companies will qualify you for a title loan quickly, usually the same day, as long as you own the title to your auto free and clear without any liens against the vehicle. No credit checks are necessary since your auto is used as collateral for the loan. Unlike the cash advance loans using your post-dated check, an automobile title loan is a secured loan since you are giving up a tangible item of value. Some South Carolina title loan lenders also require you to give up a spare set of keys to the auto in case you default on your loan and they repossess your vehicle.

Title loans are, like cash advance loans that utilize the consumer’s personal check, intended for short-term use. Repayment can be due within anywhere from 14 days to a month of the loan being issued. Here again, the loan can be refinanced (or rolled over) if you don't have the funds to pay off the loan at the end of the predetermined payment period. Rollovers will come with interest payments, so one must be careful. The loans for automobile titles are almost always given for far less than the actual value of the automobiles.

Advantages Of Using South Carolina Cash Advance Lenders

South Carolina financial experts note that a payday loan cash advance can be the perfect solution to many common short-term financial problems. South Carolina cash advance lending companies allow you to access cash quickly, usually in the space of one day, if you find yourself in a monetary bind. The advantages of using short-term cash advance loans include:

• Getting money quickly: At times when you need money fast—immediately as opposed to possibly several weeks’ time as with traditional South Carolina banks and other lending institutions—a cash advance is the best way to go. Because South Carolina cash advance loan companies don’t conduct credit checks, it’s possible to be approved on the spot. The online cash advance lenders will even approve you in minutes and deposit the loaned money directly into your bank account, usually in a few hours or a day or two. This quick approval system utilized by cash advance lenders is different from banks and credit unions that can take much longer to approve a loan. Plus, loan applications that are rejected mean even more wasted time for the borrower.
• Save your credit record: Since South Carolina cash advance loan companies don’t check your credit, cash advances are a financial transaction that won’t impact your credit rating. In fact, they won’t show up on your credit record.
• No lengthy loan applications: South Carolina cash advance lenders don’t require long, drawn out loan application procedures. Sometimes banks and other traditional lenders will ask you to write a letter outlining your intentions for the money. The bank may also request that you to state a repayment plan for the loan. Cash advance lenders are in the business to make quick loans available to the customer so many will take you the process, step by step, to ensure there is no confusion on your part.
• Cash advance can save you money: As with any other loan if you do not pay it back, interest will accrue and you can dig yourself into a deep financial hole. Despite what you may have heard about South Carolina cash advance lenders, a payday cash advance can actually save you money. When you deal with a cash advance loan in the agreed upon time period, you avoid other banking transaction and potential late fees that are added onto your loan amount. With a cash advance, a $100 loan may only charge a $15-$20, while bank fees creep up to the $30 to $50 range.
• No credit card late fees: South Carolina cash advance lending companies will not charge you the late payment or lack of minimum payment fees that credit cards will charge. If you choose to skip a credit card payment instead of trying to find the funds, you run the risk of increased interest rates on all your accounts in addition to a one-time late fee. You can easily avoid the stress and fees by getting a cash advance loan.
• Bad credit not an issue: If you have bad credit or no credit, you can still be approved for a cash advance loan as long as you’re over 18, and have proof of steady employment and permanent residence. There are no credit checks to worry about, and the company won’t research your payment history or cash assets.

Cash Advance Loan Status In South Carolina

Cash advance lenders in South Carolina have proliferated mightily since the industry was banned from doing business in both the states of Georgia and North Carolina. However, cash advance loan businesses are still legal in 37 U.S. states including South Carolina. Many of the cash advance loan businesses in both states have now relocated to South Carolina.

South Carolina cash advance lenders are now beginning to offer additional services to help their customers avoid any problems with their loans by counseling them on how to take advantage of cash advance loan services without jeopardizing the borrower’s overall finances. In many instances, cash advance lenders have found themselves caught up in the fervor over predatory lending practices by traditional banks. Since cash advance lenders are allowed to charge higher interest rates under state usury laws because, like credit cards, their loans are unsecured.

Many different consumer groups and South Carolina and the federal government leaders have lumped cash advance in with predatory mortgage lenders that charge excessive fees in addition to higher interest rates. The targets of predatory mortgage lending are traditionally lower-income groups. Predatory mortgage lending has been linked to lending on the borrower’s overall assets rather than income and ability to repay the mortgage. Predatory mortgage lenders also sometimes have engaged in loan flipping. This is repeatedly refinancing loans and possibly charging fees each time. Both of these actions are a vast departure from the process in which South Carolina cash advance or payday lenders engage.

Another problem area in South Carolina that has many wishing to taint cash advance lenders involves some "credit card" companies that have offered their services only after charging fees up front from their customers.

South Carolina Regulation Of Cash Advance Lending

Cash advance lenders in South Carolina are regulated through the state Board of Financial Institutions under the South Carolina Department of Each. payday lender must be licensed in order to operate in the Palmetto State. These licenses are issued to those involved in what state law defines as two levels of cash advance and check cashing. "Level I check-cashing service" means any person or entity engaged in the business of cashing checks, drafts, or money orders for a fee, service charge, or other consideration. A "Level II check-cashing service" licensee may not be licensed to engaged in the business of deferred presentment (post-dated checks).

Cash advance loans can be a real boon to the consumer as long at it is used in the manner in which it is intended. For the occasional, minor financial inconvenience, cash advance loans can make a world of positive difference.