Cash advances are used by Americans every single day. Whether you’re looking for some extra holiday cash, or want to catch up on old payments, cash advances can prove incredibly useful. However, it’s important to understand the pros and cons that come along with using cash advances before you begin applying for them:
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PROS:
1. Get Cash Instantaneously
One of the best things about quality bank cash advances is the ability to get the money you need immediately. In some cases, you simply do not have the time to wait for lengthy loan approvals or to sell your spare belongings for some quick cash. When this is the case, you should be looking into getting instantaneous cash to pad your bank account via a cash advance. There are more online banks and lenders than ever before, including individual lenders, so you can find a cash advance that truly works for your unique financial situation.
2. Start Taking Back Your Financial Health
It’s easy to find yourself overwhelmed by finances. If you’ve ever been in a situation where you’ve had to prioritize one bill over another, you’ll understand how quickly your finances can swirl out of control. With cash advances, you can slowly begin paying back old bills, credit cards, and other financial obligations. As you do so, you can begin boosting your credit score and taking back your financial health. In some cases, you can even build your credit simply by paying back your cash advances in a timely fashion. Just make sure you’re prepared to set up a schedule that allows you to do so in a realistic way.
3. You Don’t Need Good Credit (Sometimes)
Even if you have an abysmal credit score, there are some types of cash advances out there for you. Finding the right balance between accepting cash advances, and improving your credit is the end goal if you want to be financially stable. During the holiday season, many people simply need a bit of extra spending cash, so lenders are more likely to give you solid cash advances during the year’s final months. For those who are looking to pay bills, rather than buy presents, you can still use this holiday boost to your financial advantage (just be sure to do so responsibly).
4. Minimal Paperwork is Required
Compared to other loans, the amount of paperwork needed to secure a cash advance is almost non-existent. In most cases, you’ll simply have to agree to certain terms and conditions (and a timeline for when you have to pay back your loan). The interest rates are also presented transparently, making the process that much simpler. If you’re using a fully online banking setup, lenders can access your financial capabilities almost instantaneously. Due to this, they do not have to wait several days to process your cash advance, as they would often be required to do with a larger or more complex loan.
CONS:
1. Larger Interest Fees
Unfortunately, the main drawback of cash advances is that they have much larger interest fees if you do not plan on paying them back in one bulk payment. Thankfully, you can use cash advances to catch up on bills successfully if you simply plan them out in an intelligent fashion. Just make sure to consult with your partner if you’re taking out a multi-person cash advance.
2. A Shorter Repayment Timeline
Unlike other loans, cash advances often have to be paid back in a matter of weeks. Even if you’re able to pay them back in several installments, these will often be required to be paid back in a rapid-fire fashion.
3. Less Payback Flexibility
Because the interest rates and repayment timeline are less flexible, you’ll have to plan very carefully if you want to use cash advances effectively. If you go into the loan haphazardly, you can find yourself in a financial pickle quickly.
4. Credit Can Be a Huge Factor
Although you can find cash advances with nearly any credit score, the options available to you become worse when you have a lower credit score. For this reason, it’s important to weigh the advantages and disadvantages before accepting a cash advance offer.
Unlock Cash Advances and Boost Your Financial Health
While considering the delicate balance of the pros and cons of cash advances is crucial, the loan type can be incredibly useful in the short term. By being intelligent, you can use cash advances to take back your financial health in 2022. Asking a financially savvy friend to help you through the process is highly recommended.
