Do You Need A Cash Advance?
Cash advance
Being short on cash is a common problem that almost everyone has experienced. Sometimes you can just wait on making the desired purchase. If the purchase is necessary you may decide to use a credit card and delay paying until the statement arrives. Other times you can ask friends or family for a loan. And if your credit is good, you can visit your bank and take a loan there.
Another option has popped up in virtually every town with brightly painted buildings and enticing commercials. The cash advance industry has grown by leaps and bounds in recent years. Those commercials often make the process of getting a cash advance sound easy and like the perfect solution to your current money crunch.
A cash advance is a type of short term loan. People choose to get a cash advance to pay for anything from an unexpected bill to a vacation. Like any loan they require a security. The security that you put up for the loan is your future paychecks.
The requirements for cash advance loans are typically relaxed. You must be employed or have a regular income like a Social Security check. You must earn at least $1000 a month. Earning amounts will vary from one loan company to another. You must be at least 18 years old and a legal U.S. citizen. And you must have a personal checking account.
Once the cash advance is approved you then have the money to spend as you like. The cash advance company will not check up on you to see what you do with the money. But when your next paycheck comes in, a portion of it will automatically go to repay the cash advance. Depending on how the cash advance is set up, it may take several paychecks to fully repay the loan.
When used wisely a cash advance can be an effective way to deal with an unexpected expense. It can be easier and faster than dealing with a traditional bank. You do not have to have collateral such as property to get the loan. Your future paychecks serve as your collateral. And unlike credit cards there is typically not a fee associated with a cash advance.
Like any loan, a cash advance must be repaid. And like any financial transaction you should absolutely know the facts before you agree to anything. Because cash advances do not require collateral and do not have a fee, they most definitely do come with higher finance charges.
Make sure you fully understand how much the loan will truly cost you after you have made the repayment including all of the finance charges. And try to avoid using this service as a frequent solution to money flow problems. You might quickly find yourself in a vicious cycle of constantly getting loans to make routine payments.
If you find yourself needing cash advances on a frequent basis, seek help from a credit counseling service. They can help you organize your finances. In some cases you may qualify for debt consolidation which can reduce your monthly payments. In some cases you may have to make hard decisions about purchases of luxury items.
Being short on cash is a common problem that almost everyone has experienced. Sometimes you can just wait on making the desired purchase. If the purchase is necessary you may decide to use a credit card and delay paying until the statement arrives. Other times you can ask friends or family for a loan. And if your credit is good, you can visit your bank and take a loan there.
Another option has popped up in virtually every town with brightly painted buildings and enticing commercials. The cash advance industry has grown by leaps and bounds in recent years. Those commercials often make the process of getting a cash advance sound easy and like the perfect solution to your current money crunch.
A cash advance is a type of short term loan. People choose to get a cash advance to pay for anything from an unexpected bill to a vacation. Like any loan they require a security. The security that you put up for the loan is your future paychecks.
The requirements for cash advance loans are typically relaxed. You must be employed or have a regular income like a Social Security check. You must earn at least $1000 a month. Earning amounts will vary from one loan company to another. You must be at least 18 years old and a legal U.S. citizen. And you must have a personal checking account.
Once the cash advance is approved you then have the money to spend as you like. The cash advance company will not check up on you to see what you do with the money. But when your next paycheck comes in, a portion of it will automatically go to repay the cash advance. Depending on how the cash advance is set up, it may take several paychecks to fully repay the loan.
When used wisely a cash advance can be an effective way to deal with an unexpected expense. It can be easier and faster than dealing with a traditional bank. You do not have to have collateral such as property to get the loan. Your future paychecks serve as your collateral. And unlike credit cards there is typically not a fee associated with a cash advance.
Like any loan, a cash advance must be repaid. And like any financial transaction you should absolutely know the facts before you agree to anything. Because cash advances do not require collateral and do not have a fee, they most definitely do come with higher finance charges.
Make sure you fully understand how much the loan will truly cost you after you have made the repayment including all of the finance charges. And try to avoid using this service as a frequent solution to money flow problems. You might quickly find yourself in a vicious cycle of constantly getting loans to make routine payments.
If you find yourself needing cash advances on a frequent basis, seek help from a credit counseling service. They can help you organize your finances. In some cases you may qualify for debt consolidation which can reduce your monthly payments. In some cases you may have to make hard decisions about purchases of luxury items.
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