There is much to consider before you turn to an online cash advance application or open up another credit card. The simplicity of either application can wreak havoc into your personal finances if not taken under consideration. Take the time necessary to process through the pros and cons before you fill out either application.
Think about some important questions to ask yourself before you fill out the online cash advance application form.
- Am I doing this because I have a “need” or a “want”?
- Can I prolong paying or purchasing this till I have a better handle on my finances?
- Can I afford to pay for part of this to limit how much third party money I use?
- Do I have another avenue to obtain fast money?
- If I make my payment on time what will be the total cost?
- If I cannot afford to pay in full, how long will it take me and calculate the final cost?
- Am I clear on the annual percentage rate and what it means to my loan balance?
Take the time to answer each of these questions in order to make a smart decision about the expense under consideration. If you answered “want” to the first question, it should tell you right off that a cash advance or payday loan is not the right choice. Any responsible lender would say the same thing. Save your emergency cash for those things that “have” to be paid or purchased.
Before you apply for a new credit card, answer these additional questions:
- How does my credit score look?
- Can I afford to lose a few points for this application?
- Can I afford one more payment?
- Will I be able to refrain from spending the remaining balance?
- What is the interest rate for my purchase or cash advance?
- Is the interest a promotional rate?
- If so, when does it end and what will the new APR be?
- Do I have any future financial matters which will be negatively affected by this new card?
Evaluating finances is an important step to maintaining a balanced budget and a good credit score. Use a monthly budget as a tool to supervise the flow of your money. Categorize your payments in order to keep track of money transactions and where you can cut back when necessary.
If you are denied the credit card, refrain from applying for another one. Chances are good that you will continue to be rejected. Online cash advances are different since there is no credit bureau check. You can keep applying to lenders without any record being kept like there will be for credit card applications.
People are attracted to convenience. Fast money with an online cash advance becomes more attractive to those with poor or no credit. Obtaining the loan with ease does not make it right if you will not have the money to pay it back or if paying it back will hurt other finances. Think things through before you fill out the application. Make sure you can afford the additional cost and that spending the money was worth the cost of the loan.
