Cash America is one of the largest pawnshop and payday lenders in the world. In 1983, Jack Daugherty opened his first pawnshop in Irving, Texas. Now, Cash America provides financial services at over 1,000 lending locations throughout the United States, Mexico, United Kingdom, Australia and Canada. It is also the owner of several online personal loan providers through Enova: its internet lending division.
Cash America offers pawn loans, auto title loans and payday loans, which are also known as cash advance loans. To apply for a cash advance you must visit one of Cash America pawnshops. If you're looking for online lending, Cash America provides online loans through its subsidiaries: CashNetUSA, DollarsDirect, NetCredit and Headway Capital.
Interest rates range from a $235.58% to 533.40% APR depending on which state you live in. These rates are based on borrowers repaying the entire loan on-time. Borrowers who don't pay online or rollover their loan will have to pay additional fees. Cash advances are generally priced as a fixed fee for every $100 borrowed. For instance, in Nevada, the fee for every $100 is $16.50, which amounts to an APR of 430.18%.
Loan amounts vary from $100 to $2,500. The loan amount you qualify for will depend on your income, living expenses and the state you live in. Cash advance loans have short repayment periods of just two to four weeks and many borrowers have to extend them over several months, which can further increase the cost of the loan.
Cash America operates in Alaska, California, Indiana, Kentucky, Louisiana, Michigan, Missouri, Nevada, Ohio, Tennessee and Texas.
The application process is simple and fast. You must call at one of its branches and provide valid ID, proof of income, a checkbook, a bank statement, proof of address and a valid phone number.
Cash America is a payday lender, so its interest rates are extremely high. However, it is an active member of the Community Financial Services Association, and follows their code of best practices. For instance, they only allow a maximum of four loan rollovers and give borrowers the option of entering an extended payment plan. The application process is a fast and easy, albeit expensive, source of cash for borrowers with bad credit.
Payday loans are only a defensible option for borrowers with bad credit who can afford to pay the entire loan on-time and need the cash want to avoid bank overdrafts or further tarnishing their credit rating, if they are paid in full and on-time. The problem is that most payday loans are extended several times, which further increases its cost.