CASH ADVANCE – A LOAN THAT WILL FILL YOUR WALLET
Cash advance is perfect option for those days when you need to borrow cash urgently to stay afloat. They are especially useful for an emergency expense as you can get the loan faster than loans from other traditional sources. Cash advances are short-term small loans that are disbursed swiftly by your lender and with few requirements. Cash advance accrues interest once received, and rarely have an interest grace period. The repayment period is usually regarding months, and while they have a higher interest rate than credit card purchases, they are more manageable than payday loans. This is concerning payment schedules and finance charges. Payday loans are paid within a shorter amount of time than cash advances, and their finance charges are fixed and higher.
Benefits of merchant cash advance
- Easy to borrow
If you have short-term financial difficulty, cash advances are an easy way of alleviating your financial stress. They are most beneficial to consumers with a poor credit card score who may not qualify for a conventional loan. Their terms are straightforward, making them perfect for emergency cash needs. There is no confusing paperwork or lengthy borrowing procedure involved if you are in need of cash. You could have it in your account as early the next day once you have submitted your details to your lender.
- Do not check your credit score
Cash advance near me facilities may perform soft checks on financial standing, but they are not influenced by your poor credit score when availing you a cash advance. Even with a credit score as low as zero, you do stand a fair chance of getting a cash advance from your lender. Your lender will mostly look into your employment status and the amount of wages you earn, and if they are regular. The most basic criteria they have is an age limit and your citizenry.
Seven reasons that may require a cash advance loan
- Cancellation of debt A cash advance can be used to pay off a loan from another source, a credit card one for example. If the amount of interest on your cash advance is lower than what you owe on the other debt, it makes sense to get your cash advance money and pay the ever growing debt you initially had. If you cannot access a debt consolidation service, then your cash advance can step in and ease your stress.
- Clear embarrassing situations Borrowing from friends and family may put you in an awkward position, even if it is safer and cheaper than acquiring a cash advance. Owing your acquaintances or family cash can sour your relationships.
- Holidays When the holidays are on, expenses may skyrocket, leaving parents with substantial budget deficits. While borrowing more than you need may pose a challenge, a responsible borrower can use a cash advance to easily clear annual costs.
- Medical emergencies If you have no health insurance, medical emergencies can leave you high and dry with no alternatives to a cash advance. If your bill is not paid straight up, it starts accruing interest, just like all debt. Cash advances can offer the funds need fast enough to cushion you when you have an emergency bill to pay.
- Mortgage repayments
When you fall back on your mortgage repayments, your mortgage company may take action against you for late payments. If your mortgage company will not reconsider your payment plan and you cannot downsize your home, then a cash advance loan may offset late repayments can help soothe your mortgage company.
- Overdrafts Checking your account only to find it overdrawn may shake you to your core. Overdraft charges are worth avoiding at all cost. A cash advance interest rate may be lower than overdraft charges posted by most banks.
- Bills If your bills are too high, getting them paid with a cash advance is much more affordable than having them shut off over non-payment. A cash advance will be availed fast enough to mitigate the downward spiral that result from unpaid bills.
Safe ways to borrow cash advance loans
- Ensure that you acquire them for emergencies only
- Borrow from reputable direct lenders
- Do not borrow more than what you can afford to pay back comfortably
- Set aside a percentage of your next checks to pay off the debt
- Do not take on new cash advance loans before you have paid the older ones.
Alex is a former budget manager turned entrepreneur. He works mainly at home on his credit score advice website and writes a financial blog on the side. He hopes to expand his business into a full online lending company for bad credit as soon as he gets enough investors.