If you’re in a situation where you need money but don’t have the funds in your account, you may want to consider a cash advance. These days, cash advances have become easier to obtain, with some lenders allowing you to apply for funding online.
What is a cash advance?
A cash advance is a type of personal, short-term loan offered to you by a lender. It gives you quick access to cash to cover your short-term needs, such as paying bills or covering an unexpected emergency. A typical cash advance lasts between two and four weeks–or until your next payday. When the loan is due, you’ll either pay back the loan plus interest in one payment or possibly have the opportunity to pay a fee and carry the loan forward.
The amounts offered for a cash advance tend to be smaller–between $50 and $1,000–so if you need more money or need it for a longer period, an installment loan (where you are loaned more money but pay it back over a set period of time) might be better for you.
Who are cash advances useful for?
They’re helpful for borrowers who need cash quickly and may have poor credit, preventing them from qualifying for other loans or lines of credit. That’s because some cash advance lenders have more lenient requirements. For example, they may consider not just your credit score but also your income and employment history.
Does a cash advance affect my credit score?
If you pay back your cash advance on time, and if your lender reports to the credit bureaus, your credit score may improve as lenders will see you have a history of paying your loans back. On the other hand, if you miss or make late payments, your credit score may decrease, so it’s important to be aware of your due dates.
How do I get a cash advance online?
Applying online is relatively straightforward. You can do it at any time of day and find out quickly if you’ve been approved. Once approved, the money is transferred into your account and available to use for whatever you need.
The first step is researching the terms that meet your budget and needs. Consider how long you need the loan and the interest rate you’ll be charged.
Once you’ve decided on a lender, go to their website, and fill out the application. You may need to provide information such as your:
- Government ID
- Proof of income
- Checking account
- Social Security number
- Valid email address
What can I use my cash advance for?
Cash advances are unrestricted, so once the money is in your account, you can use it for your needs. Borrowers typically use the money to cover the following:
- Bill payments
- Car repairs
- Emergency medical treatment
- Veterinary bills
A cash advance can be helpful if you find yourself in need of money to cover important expenses. While you can go into a physical location to apply, you can also do so online, enabling you to apply at any time of day or night and have money quickly deposited into your account.