3 Myths About Cash Advance

3 Myths About Cash Advance

3 Myths About Cash Advance

3 Myths About Cash Advance

Although most people don’t tend to think of this option, a cash advance online with our direct lenders is in fact a useful option facing a financial emergency. It’s high time we clarify the myths surrounding a cash advance, allowing you to decide whether or not it’s a good fit for you.

Myth #1: Cash Advances are Loans

Sure, the way you go about obtaining a loan and a cash advance are rather the same, however the outcome is not. On one hand, loans demand an extended commitment as well as an established repayment schedule while on the other hand, a cash advance can be seen as a short term loan – paid off within days or weeks. If you’re in need of a little financial adaptability, then a cash advance provides more advantages.

Myth #2: They Have High-Interest Rates

To the contrary, a cash advance is not an actual loan and therefore, most providers of the latter don’t usually charge an interest rate. Moreover, such an advance is based on future income as well as the providers requirements. Therefore, once you’re approved for the cash advance, you’ll be informed of exactly when you should receive the money as well as how much you’ll be requested to repay. In most cases, a cash advance offer won’t be made unless the provider is absolutely confident that they can do so in total responsibility. Transparency of the sort is not usually found with loan lenders.

Myth #3: Only Desperate Person Apply for this

It is widely assumed that only failing members of society request a cash advance. Reality demonstrates quite the opposite: with a 63 – 80% rejection rate, classic loans can’t be obtained by everyone. Someone applying for a cash advance is more likely to need quick money than anything else.

Is it Right for You?

Of course, the decision comes down to you and you alone. However, before making such an important decision, it’s best to understand the truth behind the many myths that concern a cash advance.


4 Ways to Get the Cash You Need Fast

4 Ways to Get the Cash You Need Fast

4 Ways to Get the Cash You Need Fast

4 Ways to Get the Cash You Need Fast

So, you’re dealing with an financial emergency and your savings just don’t cut it? The quick and simple fix would be to head over to the bank and request a loan however, such is no the case when you need cash now with a bad credit score. Need cash? Here are a few possible options:

Best ways to get quick cash

1. Loan from friends

Instead of taking a second mortgage out on your house or selling all your personal goods, think about asking a friend or family member for a loan. Although having such a conversation isn’t necessarily one you may be looking forward to, you’ll never know if you don’t ask. More so, the loan doesn’t have to be without interest – as long as it’s lower than that of the bank, you’re good to go!

Having a previous relationship with friends or family means it may be easier to convince them to lend you cash than it would be convincing the bank. Afterall, your buddy can’t perform a credit check or evaluate your financial history prior to making their decision.

2. Credit cards

If you qualify for a credit card, then this option may be the one for you. If your cash emergency is short-term and you have a stable income, obtaining a credit card can be a good idea – especially if you can get a low interest rate. A credit card not only allows you to pay for your essentials but equally buys you time in paying back your debt. Physically receiving the credit card after the application process may take a few days though, so make sure you keep that in mind.

3. Home equity

Leveraging the equity in your home is another option, especially if the emergency is truly short-term. The latter is a credit line that is extended to a homeowner and uses your home as a collateral. Of course, the amount of obtained cash depends on your home’s value, remaining mortgage balance, household income as well as your credit score. This option allows you to either receive the maximum amount of allotted cash or just enough to cover your needs. The cost to establishing and maintaining the home equity line of credit is your responsibility, however. You can learn more about these here.

You can select your own repayment schedule by setting it for less than 10 years or more than 20 – either way, the balance in full must be paid for by the end of the loan term. Of course, you will still pay interest in this scenario however it is possible to have the latter deducted from your income taxes. This option is highly unlikely if you are unemployed!

4. Pawn shop loans

Pawn shop loans may not have a good reputation, however such is in fact a safer option than, say, auto title loans. Interest charges here can become very high, without mentioning the other fees that will also have to be paid for. However, if you don’t pay, seeing as you put an item up for a collateral loan, the worst that can happen is that the pawn shop takes possession of that said item. In other words, no debt collectors running after you and no losing your car!


How to Get a Cash Advance From Your Credit Card

How to Get a Cash Advance From Your Credit Card

How to Get a Cash Advance From Your Credit Card

When it comes to obtaining a cash advance from one’s credit card company, the process can appear pretty simple: Find an ATM machine, insert the credit card, enter the PIN and receive the cash. However, if you’re dealing with a bad credit score, then the latter steps are often unconceivable and can generate numerous difficulties along the way. Instead of attempting to obtain such a loan from your credit card company through an ATM, receive your cash advance online for bad credit!

If you have a habit of withdrawing cash from your credit card on a regular basis, then you probably already know just what kind of financial difficulties you could be getting yourself into. Beware however; even without such a habit, doing so just once can still still get you landed in a sticky financial situation.

The truth of the matter is, credit card companies take advantage of individuals in desperate situations. In fact, a cash advance from your credit card is probably one of the worst transactions one can proceed to – leading to poor credit rating as well as a negative credit score. Before you start taking the steps toward accessing a credit card loan, you should probably keep reading in order to have all the necessary information.  

The Dark Side of a Credit Card Cash Advance

Credit Score

Keep in mind that every single financial decision one makes has a direct impact not only on credit score, but equally on the FICO score. The latter scores can be viewed as the “heart of your financial life”. In order to keep a positive credit rating, it is important to pay off and credit card payments made within a 30 day period. However, taking a large cash advance, or even several small ones, from your credit card can make paying back the totality rather difficult. Credit card debt over an extended period of time has a direct negative impact on credit rating and scores – making obtaining loans of all kinds next to impossible, let alone applying for and being approved for a future mortgage.

Once your credit card rating gets spotted with debt, late payments and other negative elements, you will quickly become an undesirable candidate for a loan in the eyes of most banks. You credit report will demonstrate the loaning money to you is a highly risky situation and many lenders will refuse to work with you entirely. More so, if ever you were to be approved for a loan, then don’t be surprised at the outrageously high interest rate!

Fees

There is a world of difference between using your debit card at an ATM machine and using your credit card. When using a credit card, you will automatically be charged a cash advance fee for borrowing the money from your said company, which can easily range between 10$ and 20$, as well as an extra ATM fee. Think about it: The request for 20$ off your credit card can easily end up costing a good 30$ or even 40$!

Interest Rates

If the unexpected and incredibly high fees haven’t yet discouraged you from withdrawing money from your credit card, than the interest rates might do a better job. Just as with an credit card transaction, a given interest rate is associated to such. However, unlike traditional purchase transactions, a cash advance has absolutely no grace period. In other words, one begins to pay interest on the said credit card loan immediately.

Furthermore, the interest rate in an of itself is much higher than one might expect. Depending on your credit rating as well as your credit company, interest rates for credit card cash advances can range anywhere from 1% to 7% higher than under regular circumstances.