Cash Advance Loans Near Me

Cash Advance Loans Near Me |‌ Bridgepayday

What is a Cash Advance Loans?

All of us have been in situations where we require cash quickly and don’t possess sufficient funds. A cash advance loans near you may be your only option, regardless of whether you shop at a cash-only store or face a temporary emergency.

Cash advances can be a quick way to obtain fast cash. Cash advances are not something you want to depend on often. However, they can be useful if you’re short of funds or unable to pay an expense. Cash advances are a complicated subject, so make sure to understand them before you do.

What is the Work of Cash Advances? : Loans Near You

A cash advance is a short term cash loan that can be used to pay for an emergency or unexpected expense. Cash advances are often subject to high-interest rates and fees.

There are four main types of cash advances: cash advances via credit cards, cash loans through payday loans, installment loans and cash advances from merchants.

 Although all of these options are quick to deliver cash, each one works differently. Before deciding which option is best for you, consider the pros and cons of each.

What is a Credit Card Cash Advance Loans and How Does It Work?

A credit card cash advance is the most popular type of cash advance. You borrow money from your credit card balance to pay for a credit card cash advance. 

The process works the same as withdrawing cash at an ATM using your debit card. However, the money is drawn from your credit limit and not your bank account balance. You will need to repay it with interest.

Credit card cash advances are not like credit cards that you use to buy goods and services. Interest starts accruing as soon as the money is withdrawn. Be aware that cash advances are not allowed by most credit card companies. Cash advances can only be used for a few hundred dollars by most consumers.

You can use your PIN at an ATM to make a cash advance on your credit card or you can use a convenience check that was mailed to your address by your credit card issuer.

What is a Payday loan?

Payday loans are short-term loans that the borrower repays on their next payday. If the borrower wants to extend the loan, then additional interest will be charged. Although payday loans are typically between $50 and $1,000, the interest rates charged by lenders can be insanely high, sometimes as high as 400%.

Payday loans should be considered carefully. Payday loans can lead to a cycle of debt. They also come with high-interest rates and fees. You can “rollover” your loan if you don’t pay the due date. However, the already high cost of borrowing will increase. You might consider payday loans.

What is an Installment Loan?

Installment loans, as the name implies, are a form of cash advance where the amount borrowed is repaid through a series of pre-arranged repayments over a set period.

 Auto loans, student loans, as well as mortgage loans are all standard installment loans. The borrower pays interest and repays a part of the amount borrowed for each installment. Installment loans typically have lower interest rates and flexible terms than other types of loans.

Installment loans are a good option for borrowers who can make regular, steady payments. You run the risk of not being able to make your payments on time. This can result in loss of collateral and debt as well as a decrease in credit score.

What is a Merchant Cash Advance?

Merchant cash advances are available to merchants or companies to finance their businesses. These cash advances offer alternative financing to traditional small-business loans. A business owner typically receives a lump sum up front and then a percentage from all credit card sales until the amount is paid in full.

This type of cash advance is beneficial for some business owners. However, interest rates and fees can quickly mount up. Merchant cash advances are fast and easy, so business owners could find themselves in a cycle of debt that is difficult to break.

What is the cost of cash advances?

The fees charged will vary depending on which cash advance you take out. This is how much you could pay overtime to get a cash advance on your credit card.

  • Cash advance fees: Usually, it is either 5% or $10.
  • ATM fees: An average of $4.64 will be charged if you use an ATM, not in your network.
  • Interest charges: Cash advances are subject to interest accrual immediately. Cash advances are often charged higher interest rates than credit cards. The average rate is close to 25%.

Let’s say you have $500 left in rent for this month. Your rent is due next week. You can’t afford to be late, so you withdraw cash from an ATM with your credit card.

You’ll need to pay a $25 cash advance fee (50% of $500) as well as a $5 ATM fee for $30. Additionally, interest will begin accruing at 24.8%. You’ll also start accruing interest at 24.8% if your statement doesn’t arrive before you pay your bill.

Five Alternatives to Cash Advances

Here are five alternatives to cash advances if you find yourself in financial trouble.

1. Enjoy a Free Overdraft

What are the commonalities between payday loans, cash advances, and over-drafting? All three come with a boatload fee.

The SpotMe feature of Bridgepayday allows members to overdraft up to $200* with their debit cards without fees. Bridgepayday has you covered, whether you need to fill up a tank with gas or buy groceries.

2. Ask for an advance on your paycheck

Do you need cash to get by until the next week?

Ask your employer to provide you with a pay advance. To learn more about the policies of your company, contact your supervisor or human resources department.

You don’t even have to contact HR if direct deposit is set up online via Bridgepayday. Bridgepayday members have the option to receive payment up to two days before their due date — without any cost to them or your employer.

3. Use a credit card

Although spending money on credit cards is not recommended unless you can pay it off right away, credit card purchases have two main advantages over cash advances.

They do not begin accruing interest until the expiration of your grace period. If you pay your entire statement balance, you will avoid any interest charges.

Credit cards that are used regularly have lower interest rates and fees than cash advances.

It is better to pay your bill with a credit card than with cash advances in an emergency.

You can also look into a credit card that offers a 0% intro APR if you are certain you will be making a major purchase. You won’t owe interest if you pay the balance in full within the promotional period.

4. Pay the late fee

You’re trying to pay a late fee, but you are getting a cash advance on your credit card. You might calculate the cost of a late payment before you commit to a cash advance.

Let’s take rent as an example. Most landlords allow a grace period of five days before they charge late fees. Even then, they may not charge 5%. For instance, if your rent is $700, you will be charged $35 for a week late. This is lower than a cash advance.

This should not be a routine, but it is worth paying a late fee in an emergency.

5. Apply for a Personal Loan

You may also be eligible for a personal loan if you have good credit.

Although you will still be required to pay interest, the rate will be less than what you would pay for a cash advance of 25%. Prosper will offer rates as low as 6.95% for the most creditworthy borrowers. (Please note that you will also have to pay an origination charge.

FAQs

What is the difference between using a card with a debit and a credit card at an ATM?

You are taking your money out of your checking account when you use a debit card. There won’t be any fees if you use an ATM at your bank or a financial institution with no hidden fees.

However, when you use your credit cards, you take a small loan from the credit card issuer and pay interest and fees.

What is the difference between a cash advance and a purchase made at a shop with a credit card?

Yes. Yes. Although you are borrowing money against your credit limit in both cases, card issuers categorize cash advances differently from regular credit card purchases. Cash advances are subject to higher interest rates and special fees. There is no grace period. This means that interest will start accruing as soon as the money is withdrawn.

What amount of cash can you get from a cash advance?

The cash advance limit on most credit cards is lower than your credit limit. This can be a few hundred to several thousand, depending on the credit line. Call your credit card company or check the top of your statement to determine your cash advance limit.

Are our cash advances bad for my credit?

Cash advances can lead to a drop in credit scores by increasing your credit utilization rate (how much credit you have available). Cash advances are a sign to creditors that your finances are not in order. This can make you a more risky borrower. This could lead to a lower credit score.

Do you know of any other forms of cash advances for credit cards?

Yes. 

Last Thoughts

Although cash advances are not the best option, they can be very beneficial. A cash advance can be a fast and convenient way to get funds for urgent situations. Before taking one, make sure you fully understand all fees, interest, and costs involved in a cash advance. Make sure you consider all options before making a decision.

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Author: Alex Darwin

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.