Cash advance loans are generally short term loans for small amounts, and typically it won't exceed $500. Cash advance loans are often referred to as payday loans, check advance loans, deferred deposit check loans or post-dated check loans. All of these variations are based on the value of your next paycheck. These loans can often be obtained from check cashers and other finance companies.

Lately these types of loans have been featured in radio and television ads, and it's even being promoted on the Internet and using email campaigns. With all this exposure, it's natural that many people will consider using a cash advance when they are in some financial difficulty. Unfortunately this is not the way to get ahead financially. Although these loans are designed to provide you with quick and easy credit, they are prohibitively expensive and will worsen your financial fortunes over the long term.

Applying for a short term cash advance loan is actually pretty easy. Usually you only need identification, a bank account and proof of employment. The way it often works is that you write the loan company a check for the amount you want to borrow plus the lending fee they charge. The lender will then give you the cash for the agreed amount and will hold and cash your check after you next payday.

Naturally, because of the ease and convenience, you should expect to pay a high interest rate or fee on a cash advance loan. Short term lenders may charge anything from $15 to $50 for every $90 borrowed. You may want to compare the rates and fees of different lenders before going to the first place you come across.

As the borrower you do have a few options: first you can let the financing company cash the check you gave them and that way pay of the loan, next you could go to the cash advance store and pay the amount owed in person, or you can ask them to extend the loan, up to two times. However, extending the loan will naturally mean that you will have to pay the lender's fee again. And as you would know by now, that will become very expensive. Experts content that borrowers often end up paying almost as much as they originally borrowed in fees.

Given all this information, you can see for yourself that using a short term cash advance loan is not the most prudent way of borrowing money. Therefore, you should consider other options first, such as getting a small loan from a credit union, ask your employer for an advance, or ask friends and family. These options might give you the opportunity to raise the cash you need, without having to pay the high costs involved in cash advance loans.