Privacy & Security

7 Cash Advance Tips

A cash advance is not difficult to obtain, but you have to give the cash advance lender a pay stub from your place of employment, as well as giving them a post dated check that is issued by you. The past dated check can be dated a month after the cash advance is released to you and maybe even later. Cash advances are great when you are in need of some quick cash, but they should only be used sparingly. Inexperienced borrowers are advised not to use a cash advance if they do not have control of their cash flow. The main disadvantage of a cash advance is that they easily can get out of control. A cash advance can look affordable for a while, but the charges may add up over a few months. Because of this, you have to consider several things before trying to obtain a cash advance.

  1. The amount that borrowers receive from a cash advance is significantly lower than the amount that is written on the post dated check you give the lender. Finance charges will be deducted from the cash advance, per the terms and conditions that have been agreed upon by the borrower and the lender. You must write a check that has both the amount of the cash advance, as well as the finance charges. Finance charges will be higher if the cash advance is not paid back in a timely manner.

  2. It may be the case where you have more funds in our account in order to cover the check amount. In case the amount of the cash advance is due and you cannot repay the cash advance there are other options available to you that are provided by the lender. They may suggest renewing the cash advance or considering a new amount of the cash advance. This new cash advance will have separate finance charges and additional late fees, which all add up to a new amount.

  3. There are various state regulations that cover cash advances that have a 30-day term limit. The lenders use their discretion and issue cash advances that are generally not less than 30 days. This makes you bound financially to the lender to repay the cash advance or pay higher fees.

  4. You are aware that cash advances are good to use when experiencing a cash flow problem. This states that you are expected to repay the cash advance as soon as you have our finances on solid ground. However, an observed trend has been to "roll over" the cash advance, which results in paying back much more than the original amount. What this does is creates pressure on you to repay the loan for significantly more money.

  5. Cash advances are set up in a way that they can be obtained by borrowers that have a lower income and cannot get quick cash from other sources. It must be taken into consideration that the cash advance lender does not look at the financial situation of the borrower in cases such as these.

  6. There are many cash advance services that will automatically roll over the cash advance. Others have agreements, through contracts with the borrowers, which state that the borrower does not have the right to file for bankruptcy, as well as any other type of suit, against the cash advance lender.

  7. Cash advances are seen to be the last resort available to you when there is no other way to obtain quick cash. Cash advances are easy to get, are hassle free if approved, and because of this are tempting for borrowers.

Whenever you look to obtain a cash advance you should be informed about the risks involved, the various rates of the cash advance, and about the fees. You have the option to look for help from various organizations that will give you viable negotiation options, which may reduce the interest rates and lower the monthly interest charges.

You can state that cash advances are solutions to our cash flow problems, but if not gone about in a wise manner it can get you in a lot of trouble financially. It can put you further in debt, as it is always advantageous that you make sure you have enough money to repay the cash advance when those funds are available to you.