Sometimes there is a sudden need of money and we wish we could get some cash advance to take care of those needs. This could be to pay for an unexpected expenditure or due to any emergency. At such situation it is important to stay calm and opt for the best cash advance option after considering some of the points that we have described in this article. Some companies might promise easy advance with easy repayment options but there might be better options we oversee due to sudden need of money and end up taking a wrong financial decision.
1. Is the interest rate too high?
The first thing you should consider is the interest rate on the amount you are going to borrow. There are some lenders who might make it appear that their interest rates are best in the market but with so many lending options nowadays its worthwhile checking for the other companies and lenders.
2. What are the charges on late payment?
The fact that you have taken a cash advance option suggests that a lender has given the money to you based on an assumption that you will pay the amount back after next salary or source of income which you have to show to lender before taking the advance itself. The whole idea is based on the fact that this borrowed cash is an advance which you will be repaying soon. However, with EMIs and regular expenses it might become difficult to pay the entire amount immediately and get financially wrecked again. So you must know about the late payment charges and if you can afford to pay the fine in case you fail to do a timely payment.
3. How quick it is?
A cash advance loan is needed at the moment of emergency. The entire process of applying for the loan and getting the cash in your hand should not take long as else it would ruin the purpose of taking a cash advance in the first place. Thus, a cash advance loan should be easy to get and quick to get. Typically, on the same day you apply for the loan.
4. Credit Score
The cash advance loans require minimal of paperwork and hassles. So you can get it even with a poor credit history. However you must make sure that your lender is not trying to give you an astronomical interest rate based on your past credit history. Usually your old credit history doesn’t come to picture when you take a cash advance loan and you should also not let it damage your credit history.
5. Check out for alternatives
While opting for a cash advance personal loan can be one of the best options, you must check other alternatives for the cash advance loans. Reaching out to help of friends and family is the best solution in case of an emergency where you can save yourself from the high interest rates. Peer to Peer lending is another alternative. Sometimes the credit card companies promise to be your most useful aide but in the end charge too much of interest rates. Thus, a personal loan from other source could be an alternative too, provided you don’t need the amount instantly.
Conclusion
In the end, we must remember that we should opt for the credit card advance only when we don’t have any other alternative with better options as described above. The cash advance should not put you in a debt cycle and make things harder for you. Be careful in choosing the right lender and do enough research about all options and alternatives available to you. Most importantly don’t trust anything verbal before you take a cash advance. Sometimes what the companies or lenders promise verbally has a hidden meaning or motive and thus it’s important for you to go thoroughly about the written agreement they present. Mae sure you understand the terms and conditions before you sign the agreement. Finally, use a cash advance option only during an emergency.
