Are you in need of money? Cash advances are a good way to get fast cash for your current needs. Whether the money is for an unexpected expense, refreshing your savings account balance, or other reasons, a cash advance may be the one thing you need to help you get back on track with your finances.
What is a cash advance?
Considering a cash advance, but not sure how it works? It’s simple! A cash advance is essentially a short-term loan you can receive provided through your credit card. The primary reason for receiving a cash advance relates to your unexpected or unwanted financial issues.
To collect a cash advance, the process is usually simple to navigate. However, you need to be aware that the interest fees and rates for your loan could be significantly high, which could result in harming your overall credit. The reason being, cash advances are generally used during financial emergencies, with a fast payback rate.
With our help at Your Loan Depot, we can navigate your cash advances the correct way!
Be sure to plan.
Unlike many other loans that can be paid back over a period of time, cash advances are paid back in one round of payment – most often only a few weeks after the cash advance is received. Be sure to keep an eye on your budget so the loan won’t affect your credit negatively. The more responsible you are with your payment loan will decide how well your credit will eventually be.
Make sure you are saving money.
Saving money is crucial to the wellbeing of your credit when receiving a cash advance. Most times, cash advances are expected to be paid back in full by your next pay period. Instead of putting off the payment, save enough so you will have the money to repay the cash advance when the time comes.
Make sure you don’t pay too late or early.
This rule is common knowledge with any loan. To ensure your credit score isn’t affected negatively, you need to be on time with your payment. Paying too late will adversely affect your overall credit. If you think paying your loan off early will help you down the road, that is not necessarily correct. Paying earlier than the pay date with a cash advance doesn’t save you money, whereas with a different loan it is possible. The amount you owe will be the same on the scheduled payment day – there isn’t a possibility to save some of your money by paying that loan forward any earlier.
Try building an emergency fund.
Cash advances aren’t always the first choice, but sometimes the right choice to make in unpredictable situations. However, if you choose to build an emergency fund, this may aid you in the future; having an emergency fund can help prevent the large amounts of money you would need to spend on a loan by itself. Having an emergency fund will help you down the line — you get the money you need when times are tough and can pay any other sums of money when the time comes!
If you need a cash advance, need help navigating the loan, or just want to learn more about how a cash advance may help you, contact us!