Getting a cash advance is a fast way to get some extra money when you are in a hurry. There are a few different ways a person can get a cash advance.
- Apply for an online cash advance.
- Go to a cash advance store.
- Use an ATM against your credit card.
- Borrow from family or friends.
- Use a convenience check from a credit card.
How each cash advance is different:
The first option is pretty simple. An online cash advance lender provides a free application online with a promise of money in the bank by the next business once you are approved. Getting a cash advance from an online lender is quick money with a fast payoff to keep the advance cost effective.
Go to a cash advance store and turn in a signed check with an application. This check will be deposited on the day chosen for payoff. At a store you can have your money right away if you are approved.
Go to an ATM and use your credit card to get a cash advance. On your monthly statement, a cash advance is shown as a small percentage of your available balance. The interest rate for a cash advance is usually higher than the one used to calculate purchased amounts.
If you have a family member or friend who can give you a cash advance you are one of the lucky ones. The cost of the loan could be your relationship so you need to be careful with personal cash advances.
A convenience check from a credit card is also calculated using the higher interest rate. The check can be written for more than the typical cash advance amount. You can use it to purchase items, pay towards another loan or credit card, make it a personal check and cash it at a bank, or transfer debt to consolidate some of your debt. These checks can eat up a balance amount quickly. They are a convenience which can prove to be costly with the higher interest rate charged plus the possibility of an additional 3% -4% amounts against what was borrowed.
One of the dangerous parts about using a convenient cash advance check from a credit card is that the interest rate starts accruing immediately. The problem paying this amount off over the long run could get quite pricey. Some credit cards will entice customers to use these checks with a low interest incentive. The interest is usually for a short period of time and if the balance is not paid off quickly, the interest will go up and create more problems paying the balance off.
Using promotional rates are a good idea if you are going to pay the balance off before the rates change. In many ways, this is similar to how online cash advances are run. The low cost cash advance is an economical way to get fast cash when they are paid off with your next pay check. Like any borrowed money, you will want to only borrow the least amount necessary to take care of your money shortage. Have a payment strategy in mind whenever you need to borrow cash. Keep debt off your plate as best you can to safeguard your future finances.
