There's a good chance that you know what a cash advance if you're visiting
this site. This page is dedicated to people that aren't so sure or just
need a refresher course on what cash advances are all about.
Payday Loans vs. Cash Advances vs. Payday Advances and so on...
Cash advances come in many shapes
and sizes, but more variability exists in the name than anywhere else
as it relates to the actual product itself. Cash advances are payday
loans. Payday advances are cash advances. Cash advances are payday
advance loans are cash loans
and so on. See a pattern? There's no real difference between any of
these products except their name, though sometimes lenders may mislead
you (intentionally or unintentionally) based on what they choose to
call their product.
A Loan By Any Other Name...
So names aside, what is a cash advance used for? The most important
lesson you as a potential cash advance consumer could learn is the fact
that cash advance loans are
meant to cover a short-term financial need. The reason why cash
advance companies have come under such fire recently is due to the relatively
high interest rates that come from extended use of the product, despite
its short-term nature. In other words, using a short-term cash advance
for any purpose that is not short-term in nature can result in very
large, long-term financial consequences. Consult your accountant, personal
banker, or another professional to determine if a personal
cash advance is right for you.
How do I know if my needs are short-term or long-term?
When figuring out whether or not a cash advance is the best way to
go, the test of time is generally the smartest way to approach the issue.
Begin by considering the bill, product or service that you intended
to purchase using the funds you obtain from issuing a cash advance...
is the product or service vital? Could you wait a bit longer? Cash
advance companies make their money by capitalizing on your urgent
cash advance need, so determining if your need is truly urgent is
the first step toward making an informed financial decision.
Next, consider when you'll have the money to pay back the payday cash
advance loan. Will you have enough on your next payday? If you answered
no to this question, it may be in your best interest to consider an
alternate source of funding such as a collateralized loan against a
home, vehicle, or another asset. These loans generally have a lower
interest rate since they're secured against a physical asset, and as
such will afford you a longer window of time to make payments without
costing you an arm and a leg in interest.
If in fact your need is short-term and you would be able to
pay back the loan on the date of your next payday, then a cash advance
is the best way to address the financial concern that's on your mind.
Before you fill out your cash
advance application, be sure to investigate the various cash advance
lenders that are available to you. Check out their products, ask lots
of questions, and make sure you feel good about doing business with
that particular vendor. A good cash advance company knows that their
customers are usually stressed out about financial situations that are
beyond their control, and they'll do whatever it takes to ensure that
you are comfortable with the process and that you're happy with their
cash advance product.