Before starting the debate or whether or not a cash advance is the best thing to opt for, let us focus on what it primarily is. A cash loan advance or cash advance is that which is given to you by a certain credit company that also provides online loan services. However, the question that first pops into mind is that when and why do you need cash advance?
Well, the answer to that particular question is that sometimes, when your bill payment is very close to the deadline date, and your credit card has maxed out, there is no option but to turn to an alternative. Now even though some people may find it okay to ask for money from friends and family, most people are not comfortable with it and so they the cash advance instead. Bill payments aren’t the only reason why people may ask for the upfront cash from service providers, but it is one of the primary ones.
As with everything else, all is not good with the cash advance. There are few benefits and some disadvantages as well. So, if you are going to be asking for a cash advance, just make sure you weigh the pros and cons so that you can make a better judgement on what needs to be done.
- One of the main reasons why people are opting for cash advances is because you get them pretty quickly. Some companies have the policy to grant them to you within a day or two, while others may take a week and no longer.
- Getting the cash advance is extremely easy. You don’t necessarily need an ATM or a bank, and this will be a great help when you are travelling and short of money somehow.
- Unlike other loans, it is very easy to qualify for a cash advance. All you need is the proof of a job and a steady and constant pay check, and you will be granted the advance immediately.
- The return payment of the pay advance is expected to be made in a month. This helps you get free of the debt in a shorter amount of time.
- The first major setback of cash advances is that they are given in very short amounts. Even though each service provider has a different policy, most will only grant from 500-1500 to an individual.
- Of course, interest rates apply to cash advances, and they are pretty high. Generally, the interest rate for cash advance is 18% and will exceed further if you do not pay on the right time.
- Lastly, because cash advances are so convenient, you may get addicted to them overtime. Getting addicted to them will mean that you take out more cash advances within a time frame and this will cause you to be in a very bad debt situation.
So, as a conclusion, we can say that a cash advance is a good idea if you are in a condition where money needs to be paid pronto. However, it is only a good option if you are a professional person and if you are sure that will be able to pay them back within the specified time.