Sometimes, situations arise that leave people short on funds and without options for paying sudden expenses.
When this happens, people have several options for what to do, but one option that many consider is getting a cash advance or pay day loan.
While these loans are not right for everyone, cash advances help a large number of people each year. Cash advances are different from normal personal loan options, making them ideal for those with poor credit, low income, or those who need money fast.
Why Use a Cash Advance or Pay Day Loan?
<p>Many people get cash advances for sudden needs because they do not have high enough credit scores to get a traditional loan. While banks require that borrowers have excellent credit histories, cash advances are not so selective. Most people can qualify to receive cash advances, usually with a short period of time from the application process. This makes it a more accessible option for those with poor financial situations.
Why is it Faster to Get Money From a Cash Advance?
Traditional loans may take several weeks to apply for and eventually receive, as banks go through a lengthy application and qualification process before making a decision. Funds may not be dispersed for a month or longer after the initial application process. However, cash advances have very short application processes, and funds are often available on the same day. For those with immediate needs or emergency situations, this makes cash advances a far better option.
What are the Downfalls of Cash Advances?
One of the main downsides of cash advances is that they traditionally have very high interest rates. This means that people end up paying a lot more long-term to borrow the money than they would with a traditional bank. Also, cash advances usually offer long term repayment and lower monthly payments, so the interest can add up quickly. Anyone who takes cash advances should try to pay it back as quickly as possible to avoid large interest fees.
What Can the Money from a Cash Advance Be Used For?
There are no restrictions of the money received from a cash advance, so it can be used on anything that the borrower sees fit. Money is often used for bills that must be paid, medical emergencies, or needed car or home repairs, but it can be used for household expenses or anything else that is needed. Once dispersed, the money belongs to the borrower and can be used for whatever needed.
Cash advances offer real benefits over other types of loans.
Cash advances are best for urgent needs, but some people opt to use them due to having bad credit. Whatever the reason, most people will qualify for a cash advance, regardless of their credit situation. Cash advances do carry high interest rates, so paying them back quickly is best. Without other options, many households use these advances each year to help get through tough circumstances and unexpected emergencies. Make sure to find a legitimate cash advance company to avoid being taken advantage of.