A major advantage of cash advance loans is the option of no credit check which means that you can apply for cash advance loans even if you are inflicted with bad credit or even bankruptcy. Still you have to give the details of your credit profile for their information. Cash advance loans usually come in the range of $200 to $2500 where you have to pay from $10 to $30 per $100 borrowed.

But the most commonly desired package is the $500 with 650% APR or Annual Percentage Rate. But this interest is applicable only for 14 days after which the banks take back their money on your next paycheck through the ACH or Automatic Clearing House. But most of the Americans find it difficult to repay the loan, so they opt the process of flipping or rolling over which means you can go for a new loan amount and new interest rates. Sometimes the interest goes as high as 1000%.

It is this exponential increase of interest rates that has made cash advance loans very popular among financial critics. They sometimes call cash advance loans as financial quicksand. Further the increase in the repayment amount ends you up paying more money than borrowed. Cash advance loans are also criticized due to the aggressive collection practices that cash advance loans companies’ adopt for taking back their money.

There are also cases where the online companies steal their consumer’s identity through the social security number that they have to bear with when they apply for cash advance loans. Sometimes they gain access to your accounts and loot of your earnings. They may steal your social security number and may give it to people who have bad credit.

It is through this way that many online banking companies offer to provide new SSN or repair your credit. All these complaints regarding cash advance loans must be filed with the FTC or Federal Trade Commission. The FTC takes care of the consumers’ interests and creates awareness of such bogus companies through various print and electronic media.