What is a Cash Advance or a Payday Loan?
A cash advance (sometimes called a payday loan) is a short term loan which is usually paid off with the check from the next payday. In essence, it is receiving money from your next paycheck ahead of time.
What’s the difference between the two?
A cash advance can also refer to cash borrowed from a credit card, while a payday loan typically refers to money borrowed against a person’s next paycheck. The interest rates and fees vary from one payday loan to another, and from one cash advance to the next.
What are the benefits of getting a Cash Advance?
The biggest benefit of receiving a cash advance or payday loan is the ability to pay off incurred costs quickly. They should only be used in emergencies in which you have no access to cash. Let’s say you incur medical expenses and you don’t have enough money to pay for the treatment… you can take out a cash advance and usually have the money the very same day.
What are the disadvantages of acquiring a Payday Loan or Cash Advance?
The main downfall of a cash advance and a payday loan lies in their high interest rates. Much of the time, the interest rates associated with cash advances are over 20% annually, and interest begins accruing the very same day the loan is taken. Also, there are initial fees that must be paid as well.
Where can I get a Cash Advance?
Payday loans and Cash Advances can be applied for at many different institutions. Just look up Payday Loans in your local yellow pages. You can also take out a cash advance through online institutions who will wire the money directly to your bank account. For your benefit I’ve compiled a list of the most reputable online Payday Loan Companies.
