By Martha Simons


Getting a Cash Advance Loan Online: Things to Know about It

Do you experience a time when you don’t have enough money to pay an upcoming bill? If yes, you should find a way to deal with this situation. And this is where cash advance loans can be a fast, easy, and effective solution. However, their long-term consequences can be costly, affecting your credit record in the future.

If you consider taking out a cash advance for the first time, you should learn how to use it properly. Make sure to know the basics.

How to Understand Cash Advance Right?

A cash advance online same day at Instant Cash Advance is a short-term loan to be issued by your bank or lender. It can be given out for a short or long term. Its size may range from $100 to $15,000. This limit can be exceeded in some states. No wonder many borrowers find a cash advance as an attractive solution to financial difficulties.

Even though it seems easy to get a cash advance, it will cost you money to cover interest rates and/or service fees. Extra charges are usually imposed on online and in-store loans. You are free to pick the most attractive format.

You are free to choose one of three main types of cash advance loans: a credit card cash advance, merchant cash advance, and payday loan advance. Each of them falls under unique terms and conditions. The differences can be found in the user policies.

What Is the Cost of Cash Advance?

All three types of cash advance loans come up with an expensive price tag. While choosing the most suitable format, you should pay attention to the terms and conditions. To be more specific, you should consider the following details:

  • Service fees
  • Interest rates
  • ATM or bank fees
  • Deadline for repayment (+ late fees)
  • Payment allocation (the way your credit card issuer allocates your payments)

This information will help you make the right decision. Fortunately, there are more than enough options with zero interest rates, zero fees, and no credit check. You may catch one if you wish to.

Do Cash Advances Have an Impact on Your Credit Score?

According to the Consumer Financial Protection Bureau, most borrowers found themselves overwhelmed by loan fees. Being stuck in a debt cycle, they have to proceed with repeat loans and extra fees. While your credit score isn’t affected by a cash advance , it can still have an indirect impact.

Let’s say a credit card cash advance affects your balance. This will eventually boost your credit ratio. When estimating your credit score, a high utilization rate may cause some risky expenses. As a result, a negative impact on your credit score is guaranteed. If you exceed your credit limit, you will see your credit score affected anyway.

Being unable to make full repayment on time is another way your credit score could be affected. A negative trend can be seen for all existing types of cash advances. With high service fees and interest rates, full repayment in a timely manner can be difficult. The cash advance loan lenders expect you to roll-over your cash advance. As a result, they can earn more money from borrowers.

Who Uses Cash Advances?

Having doubts about cash advance loans is a normal thing. The ability to pay off on time is one of the most common concerns. If this isn’t a problem, you should check your eligibility for this type of lending service.

Cash advances can be accessed by everyone with a checking account and a steady income. The borrowers who don’t have access to credit cards or savings accounts have even better chances of approval. Since cash advances require no credit checks, they don’t review your credit score as a significant factor in a lender’s decision-making process.

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Last updated: Sunday, April 19th, 2020 - 12:42PM