If you are looking to take out a 1000 cash loan then there are a few key things that you need to be aware of, otherwise you will end up getting taken to the cleaners in terms of the total cost of the loan. Remember, even though you are not taking out a loan for 50000, that does not mean that the total costs (origination fees plus interest costs) can not be outrageous. In fact, most of the times the fees and costs are absolutely crazy, so you need to take even more precaution if you are looking to take out a 1000 dollar loan versus a 50000 dollar loan.
How a normal 1000 cash advance loan works is fairly simple: you go to a cash-advance lender, write them a check for the amount you are borrowing plus interest and origination fees, pre-date the check, and then the lender will cash the check after a certain amount of time (usually one week to one month). These are generally very short-term loans that are meant to simply get you by until your next paycheck comes in.
Unfortunatly, because these loans are designed for people who are in desperate circumstances it means the lender can be much more egregious in what they can charge – the more you need the money, the more they will be able to charge. This is where the biggest difference between a simple 1000 loan and a larger 50000 loan is found – the need for the money. For most cash advance loans you will pay a very high interest rate (reports I have seen show rates as high as 200 – 300 percent!) plus a fairly high origination fee.
Because of these high costs, it is highly recommended to only use cash advance loans for 1000 when absolutely necessary, and to only use them very seldomly. In fact, it can be much better to avoid them completely, if possible.
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