An online cash advance is exactly what it says—a cash advance on your next paycheck. Either banks, credit unions, or online lenders give them to people in need of money urgently. Typically, individuals living paycheck to paycheck turn to cash advance loans online during times of difficulty. That is because they are convenient, accessible, and speedy options. It may be a medical emergency, rent due, car repairs, or an unexpected funeral. In this article, we will tell you exactly what a cash advance is, how it works, and if it’s something you might need.
What is an Online Cash Advance?
An instant cash advance allows you to borrow a short-term loan from both open (credit cards) and closed (online lenders) lines of credit. You must pay back the borrowed amount, along with interest, at a later date.
Lenders calculate interest rates for an cash advance online based on an APR, which includes standard interest rates and any fees.
Benefits of Cash Advance Loans Online
Cash advance loans online certainly have some unseen benefits. People usually refer to them as payday cash advances because of their shorter repayment terms. As soon as their next check arrives, the loan amount plus interest is automatically withdrawn from their bank account.
It is said that “payday loans suck the life out of your financial health by trapping you in cycles of debt” due to their extremely high interest rates. How does this happen?
You can’t borrow large amounts of money, which you must repay in as little as 2 weeks, if you didn’t have the money in the first place.
People understandably end up taking out another loan just to pay off the previous one! The result is that they end up in deeper debt with higher interest rates to pay off in a few weeks.
However, every cloud has a silver lining, and here are a few ones on quick cash loans online that have flexible, longer repayment terms (2 months to 6 years):
- You are approved for the loan easily.
- They give you the cash immediately.
- No credit check is required.
- No collateral is required.
- Costs are lower than typical payday loans.
Are There Any Common Pitfalls I Can Avoid?
We have mentioned some of the alternatives to an instant cash advance in the next segment. You can skip to that section or continue reading. Basically, if you are unable to qualify for those other options, quick cash loans online are your only possibility left, especially in times of an emergency.
Here are a few mistakes you can avoid if you absolutely have to take a fast cash advance:
- Research lenders thoroughly.
- Choose a lender who mentions the loan’s terms transparently, including all the hidden costs, processing fees, an APR, early repayment penalties, and late fees.
- Borrow only from genuine lenders by checking their reviews.
- Take only what you precisely need.
- Try to repay as soon as possible to cut down on the interest.
- Never take another loan to pay back the first.
Safer Alternatives to Online Cash Advances
Here are a few better substitutes to a payday cash advance:
- Secured Loans (Car, Home, Jewelry Can Become Collateral)
There are multiple secure loans out there. If you have access to an asset that you may keep as collateral for your loan, then this is perhaps the best option in times of an emergency.
- Cash Advances on Credit Cards
Many credit cards too offer cash advances. They also charge a lower interest rate as compared to payday loans. When you have access to a credit card and a good credit score, you may be able to borrow large amounts off of it.
- Loans from Friends and Family
At the end of the day, it’s only our loved ones who can make hardships easier. If you can manage to get a loan from your family or friends, that is a great choice. You must promise to pay the amount back and later make efforts to keep your word.
- Low-Interest Personal Loans from MyPayDayLoansOnline
MyPayDayLoansOnline is an excellent source of multiple genuine lenders. They are approved by the CFPB (Consumer Financial Protection Bureau) and abide by all its policies to make borrowing loans online ethical and fair. Their loans are low interest, and they offer longer repayment terms to ensure that people who need money don’t feel burdened in times of emergencies.” —NerdWallet.
- Paycheck Advance from Your Employer
Many employers understand when you face a financial strain in the crunch of a suffocating life situation. You can try asking your employer to pay you a month’s salary in advance.
- Get a Side Hustle
If you don’t need money right here and now, you could try pushing yourself to meet your money needs instead of falling into a debt trap.
- Bank Account Overdraft
Bank accounts too let you spend below your zero balance. This overdraft is later compensated when your account gets credited with money. This could be from your salary or other means.
- HELOC Loan
After a certain period, your home’s equity can be used to get a HELOC loan.
Final Words
Yet, if you’re locked out of all of these options and still need money urgently, then cash advance loans online might be your only way to go. If you stay informed and aware, it is definitely possible to cut down on the potential damages of taking an instant cash advance.
