Cash advances are small amount of loans that are granted for a very short period of time, ranging from one to four weeks. The maximum amount that you can borrow varies from lender to lender, but in general, if you have a decent fixed monthly income, you can easily borrow up to $1500. The great thing about these loans is that you can get your cash within twenty-four hours. Some lending companies may also offer you a one-hour loan, directly crediting the borrowed amount to your checking account within just an hour! However, the interest rate charged by these loans is a bit higher in comparison to the other loan programs.
Who Should Borrow?
Cash advances make the best choice for those who have an urgent financial need to meet but they do not have sufficient cash available with them. The scenario is very common for people with fixed monthly income. They have to live on a budget. But sometimes, unexpected expenditures occur and they make things very difficult for them. This could be a medical bill¸ car repair bill, or just anything – the list is endless. Most of us hesitate in asking favor from friends and relatives because there is always a fear of rejection. Applying for personal loans sounds like a good idea but it takes at least a couple of weeks to get a personal loan granted – obviously, you are not in a position to wait that long. In such cases, cash advances can be a great help. They can help you get the much-needed cash immediately.
What About The High Rate Of Interest
Well, there’s nothing to worry about that. Even if the rate of interest is comparatively higher, the actual amount of interest is still very low. Since you have to pay the interest for just a couple of weeks, no matter how high the interest rate is, the actual amount will be something that you can easily pay. Let me explain how. Suppose you borrow $500 @ 50% p.a. on 22nd April and the due date is 2nd May. It means you are supposed to pay the interest for only ten days. That makes $6.8. Considering that cash advances provide you immediate cash at a time when you urgently need it, you definitely won’t mind paying that much amount of interest.
However, it is important for you to make the repayment on the set due date because any delay in repayment will attract penalty, and that will be quite substantial. So, avoid getting into such a situation.
