#1 You’re a 5th year student in college and you’ve completely run out of money to pay for the last course you need to graduate (and alcohol)…

This pretty much warrants taking out a payday loan.  If you need to take out a loan to pay for your last course needed to graduate, do yourself a favor and take the money. Your opportunity cost for not graduating is a lot bigger than the interest you’ll have to pay back. (Lesson #1 — Calculate Your Opportunity Cost)

#2 Your 1992 Honda Accord finally hit its last mile, and can no longer be called the chariot of love… it needs to be replaced if you want to get to work ontime. But you have no money!

Yep, if this has happened to you, then getting cash in advance is something you’re forced to do. Go ahead, no one’s going to judge you. Just make sure you provide your 300,000 mile car with the burial it deserves.

#3 Your 25th Wedding Anniversary is coming up and you’re flat out of cash. Plus, it’s that time of the month…

Okay, please, please, if this is the situation you’re in, for the love of God get the cash advance. Refer to Lesson #1 about opportunity cost. The opportunity cost of not buying your wife a gift for your 25th wedding anniversary is hell on earth.

#4 It’s Christmas Eve and your 5 year old son wants a PS3, but you’ve just been robbed of all your money.

Nope, sorry. This does not warrant getting a cash advance. What the hell are you thinking? Does your son really need a PS3 and Grand Theft Auto?

I hope you’re getting an idea of when a cash advance should be used… of course I’m exaggerating quite a bit.  It’s okay to get a cash advance if you’re low on funds and you know you’re going to be able to pay it back soon. Just make sure you use the money for what it was intended to be used for.

There are times where you need cash instantly… whether it’s to make  a mortgage payment, or to pay down a gambling debt to your bookie. Sometimes you just need the cash right away. This is understandable; almost everyone takes out a cash advance at some point in their lives. But there are things you should keep in mind if you want to keep your credit rating in tact, and if you want to acquire a cash advance with the least amount of trouble.

1. Know Your Needs

Your first step in getting a cash advance should be to know exactly how much you need, and whether or not you actually need it. Don’t take out a cash advance to go buy a new pair of shoes, or some new clothing. Cash advances typically have high interest rates, so ask yourself if you really need the money. Figure out exactly how much  you need.

2. Set a Time Frame

Set a time line for when you can repay the money you’re about to borrow.  Calculate how many hours you have to work to pay all the money back. Since cash advances usually have high interest rates, you want to pay back the money as soon as possible. If you have money in a savings account, you’re better off using that instead of the cash advance.  Set a repayment date.

3.  Have the Required Information

Make sure you have all your documents in order. The cash advance application is going to ask for a lot of personal details, so make sure you have all the required information. Typically, you should have your Social Security #, your Driver’s license, your employment information, and your bank account numbers.

4. Check Your Credit

It’s a good idea to check your credit rating before applying for a cash advance… if your credit is terrible and you’re not looking to rebuild it, your best bet is to just apply to a whole bunch of different companies for a cash advance. However, if your credit is in good standing, applying for a cash advance could lower your credit score by several points. You might want to reconsider if it’s worth dropping your credit rating for the money. There are a bunch of different companies that will sell you your credit report. I’ll post some soon.

5. What’s in Store for the Future?

Look at your future plans; are you planning on buying a house soon? Do you want to start up a business in the near future? If so, you want to keep your credit rating in the best standing possible…so you probably shouldn’t bother with a cash advance.

6.  Negotiate and Bargain, Find the Best Deal

Try to find the best cash advance possible. I’ll post up a list of reputable online cash advance companies that you can contact soon.  By talking to more than one company, you can usually get more money at a lower interest rate.

Follow these six tips and you’ll be golden when you apply for a cash advance.