What is a cash advance? Another way of saying cash advance is fast cash or quick cash. A cash advance is a short-term loan. And by short-term loan, I mean you pay back the cash that a lender gives you within thirty days. Now, that short of a time-period to pay back a loan may seem intimidating, but a cash advance is a very small amount of cash on loan. Usually a cash advance will is a few hundred dollars.
A cash advance should never be over five-hundred dollars of fast cash. You want to make sure that you can pay back the cash advance loan within the thirty-days as agreed upon. A cash advance loan lender will ask for you to prove your employment or source of income to ensure that you have a payday coming up. A cash advance loan lender will ask you for this information to know that you are financially capable of paying back the cash advance total and loan fees. If you don’t have proof of income your cash advance/payday loans application will most likely be denied. Also, a cash advance is known as a payday loan because a cash advance is a loan against your next payday.
Why would anyone want to get a cash advance if it’s such a small amount of cash? A cash advance is very convenient in the case that someone doesn’t have an emergency cash stash and a financial emergency comes along. A cash advance can cover your mistakes in cash-flow. For instance, if you have an auto-payment that you forgot about and didn’t budget wisely, you could side-step the bank fees and the fees that will accrue because of their being no cash funds available in your bank account.
Often, the cash advance or payday loans fees are much less than the damage to credit and fees that this would cost. So, you get a quick cash advance that deposits quick cash to cover your mistake. Within hours your mistake is fixed and you just pay back your cash advance with your next payday. Budget in your cash advance loan and payday loans fees for your next payday and it’s like you never made a mistake. Then, there’s the more extreme examples like a car problem that you didn’t expect and you can’t wait until your next payday to fix the car problem because you need a way to get to work. You don’t have an emergency cash stash so you get a cash advance to cover your car repair until your next payday when you can pay back the cash advance loan lenders and you’re set.
You still have a way to get to work and you don’t have to ding your credit or what if you don’t have a great credit score and you’re trying not to use credit cards to solve your problems. A cash advance loan will often require you to write a post-dated check to cover your cash advance loan and payday loans fees that the cash advance lender will deposit on the date of your payday so that you don’t have to worry about paying it back on time, the cash advance system already has the payment taken care of and you just have to remember to budget that cash advance into your plans for your payday spending.
Source :- Selfgrowth