A cash advance is very similar to a payday loan, except the terms are generally a bit longer. For those with poor credit, this is often a better option when emergency funds are needed. Cash advances are not legal in all 50 states, so it is important to make sure they are legal in your state before obtaining one. This is an alternative to a traditional loan and is generally for an emergent purpose.
Loan by Check
Some lending facilities for cash advances do not give actual cash; some provide a check that is made out to you for deposit into your bank account. In return, you must furnish a post-dated check to them for repayment of the loan or authorize a direct withdrawal from your personal bank account on the specified repayment date.
Advance from Credit Card
Some credit cards allow for cash advances. Not only are you charged an interest rate with the credit card company but the lender also charges a fee. In some cases, you can go to ATM for a cash withdrawal, but when you need a larger sum of money, you must visit either a bank or financial loan institution for the advance.
Varying Terms
There are varying terms by location and facility. The average cash advance interest rate is 15-percent. This fee is attached to the loan amount and must be paid in full at the time of repayment. Other fees can include administrative fees, processing fees or local taxes imposed by a specific municipality.
It is important to review the terms for the facility you wish to work with prior to accepting any funds or signing any paperwork. Always read the fine print as this can include disclosures for hidden or any additional funds that may be required.
View the repayment terms as these do also vary.
Short Terms
Most cash advances are scheduled for repayment within 14 days. Terms vary by location as some will extend out to 21 to 30 days. Most cash advance lenders require you to leave a check with them that can be deposited into your bank account for collection on the scheduled repayment date. Other lenders will require you to come to the office and make the payment in person. If a credit card advance was issued, repayment may be requested in cash form. Always ask about the terms of repayment before accepting the advance.
In a sticky situation or one where you have limited resources, this is an option to consider. This is better than a payday advance since the interest rate is much lower. Your credit does play a factor in the amount that you can advance. Your income is the biggest deciding factor as a lender cannot advance you what they don’t see you bringing in as far as income is concerned. Your other bills are not taken into account in this situation as it is a short term loan that is to be paid back in one single payment. In this situation, it is best to only ask for exactly what you need and not extra.
