A financial emergency can come knocking without notice. A cash advance loan can be your solution. Before you go for a cash advance loan, you need to know what it is and the options you have. You need to know the different loan types available and the amount of money you can borrow. This is a guide to help you determine whether a cash advance is appropriate for you.
A cash advance can be defined as a short-term loan meant to cover emergencies or unexpected expenses. The main types of cash advances include personal installment loans, payday loans, and credit card cash. Each type of loan works differently. Therefore, it is vital to understand the options you have.
Payday Loan
There are different lenders that offer payday loans. The application can be made in person or online. You will get the funds the same day. In most cases, the lenders charge a flat fee depending on the amount of money you borrow. You are required to pay back the loan during the next payday. It is advisable to go for this type of loan if you can repay the money plus the accrued interest on the upcoming payday. It is advisable to borrow small sums of money.
Installment Loan
Cash advance loans are also available as personal installment loans. These are offered by many online lenders. The lender can check your credit rating before approving your loan. Once approved, the money is disbursed to your account within days. The amount of money you can borrow varies from one lender to another. An installment loan has a fixed interest rate, and you know when you are done repaying your loan.
If you want to borrow a huge amount of money, this is the perfect type of loan you should consider. With this type of loan, you can make steady and regular payments.
Credit Card Loan
Some lenders will give you a credit card you can use to withdraw the money from an ATM. The good thing about this type of loan is that your credit rating does not matter. However, there is a limit on cash you can withdraw per month. You will pay the ATM fees and high-interest rates. If you have a credit card, this is a good option because you get the money instantly. Moreover, you do not have to send any applications or submit credit reports.