It is a fact that a cash advance is a loan option when the rest of the finances are not in the best of shape. It is one option out of many and often times gets used unnecessarily out of convenience rather than ultimate necessity. People may take offense to that statement, but it is true. A cash advance offers fast access to instant money with very little planning or red tape in order to get approved. Other options may take some planning or require additional footwork or multiple forms, but they may also provide a more financially secure solution to the impending problem.
If you own your own home, you may have a Home Equity Line of Credit available to use to solve the financial emergency. This line of credit could open new doors to not only solving the problem at hand, but may allow an individual the freedom to restructure debt.
Credit unions and banks offer cash advance loans.
Try a credit union. These financial institutions are similar to banks but are owned by members. They are run by nonprofit organizations and offer savings to the members through lower interest rates. The owners are people working for the people and will often times be a bit more lenient and forgiving to personal situations.
Peer to peer lending opportunities are found on an online platform where people with money to lend deposit their cash with the idea that the loan will supply earned interest for a good investment. The loans carry lower interest rates. Those looking for money will fill out less scrutinized applications forms than a bank or credit union would use. In fact, a borrower would fill out a form stating how much money is needed and describe why the money is needed. The investors will read the listings and choose the borrower he/she would like to do business with. There are credit checks which act like any other hard inquiry. Credit scores continue to be a factor with this option, but there is a more personal approach to the lending side.
A loan from a family member or a friend is an option. The key to a successful loan here is to treat that loan just like you would one from a business. Make the payments a priority so as not to take advantage of someone’s good intent to help. It helps to create a written agreement just like any other lending contract. Write down any interest involved, any collateral being used to protect the loan and/or what consequences there may be if payments are not made.
You may not want to ask the friend or family member for the actual cash but rather to be a guarantor on a loan. Asking someone who knows you and your situation may make a bank or credit union loan more possible. A co-signer signs on the loan to promise the lender that if you fail to make the payment the responsibility will shift to the co-signer. If payments are managed well, this type of loan will help to build your credit.
Spend some time evaluating your options and consider what a cash advance could do for your situation in comparison to one of these other small money options. The goal for whichever you choose is to pay it off as fast as you can in order to save on interest and protect future finances and relationships.
