Cash-Advance
A cash-advance loan is an increasingly popular way to cover short-term expenses that have you scrambling for money. There are several different types of cash-advances, including payday loans, a post-dated check, pre-paid visa cards, and even a cash loan drawn against a credit card.
A payday loan is like a personal loan from a bank, but without all the hassle. There are no credit checks when you apply for a payday loan, and only minimal information required. All you need is proof of employment and a current checking account number to apply. After you’ve been approved, the money will be automatically deposited into your account. If you choose, you’ll never have to think about your loan again. On your next payday, the loan balance and accrued interest will be debited from your account. If you think you might need a little more time to pay off your loan, call your cash-advance lender. They can roll your loan into another term giving you a little more time for repayment.
If you need cash, you may be able to write a post-dated check. Many payday loan companies will accept a post-dated check in return for cash, instantly. It works very similarly to the payday loan described above, but instead of worrying about when and how much might be debited from your account, you’ll choose the loan repayment date up-front. Most payday loan terms run two-weeks or a month, but by writing a post-dated check you may be able to set a slightly different term. You may choose to give yourself an extra day just to make sure your work paycheck is deposited on time.
Numerous payday loan companies are now offering financial services that not only help you out in time of crisis, but also help you stay ahead. At many of these places you can purchase pre-loadable visa cards, which are useable at almost all locations that accept debit and credit cards. A pre-loadable card is like a gift card: you simply load them with as much money as you wish. Then, you can use the cards like debit cards, or, you can save them in case of a financial struggle down the road. Payday loan lenders typically offer tax return and rebate cashing as well. You can get a cash advance on your tax return, either in cash, in a deposit to your checking account, or loaded onto a pre-paid visa card.
If you have a credit card, you can also get a cash-advance by drawing against your line of credit. You can use your credit card at an ATM or a bank to get instant access to cash. Some credit card companies charge a nominal fee for this service, or limit the number of times you can draw against the line of credit within a billing cycle. A credit card typically has an overall maximum limit and a separate, lower cash-advance limit. For example, a credit card with a $3,000 limit may offer a $600 credit line to cash. You may withdraw any amount up to and including the $600, and the amount simply adds to your credit card balance. It is usually subject to the same interest rates and billing cycles as your regular card balance, though sometimes the interest rate is higher.
The benefits to a cash-advance over a personal loan are numerous, and include availability of online lenders, almost instant access to cash, no credit checks, minimal application requirements, and no limit to how many times you use these services. If you’re looking for a little help to catch up or get ahead, a cash-advance is a great place to start.