When to Consider Cash Advance Loans
When it comes to trying to make ends meet, you may not consider what will happen in an emergency until it actually comes to it. The main problem with financial emergencies is that your pay just may not cover enough of it. While overdrafts and credit cards could be consider, trying to get a cash advance loans could be the way to go.
Of course, the best thing to do first is organize a different date when you can pay a bill or the money that you owe. There will be some companies that will be happy to do this, depending on when you are trying to arrange the date for. One week will be reasonable for many companies but an extra month will usually be out of the question.
You could look at extending your credit limit temporarily but this will all depend on whether you are already at the top of your limit and how often you pay off your account. If you struggle with monthly payments, you will usually find that you cannot get the extension. However, if this is just one payment that will put you over and you usually clear your balance at the end of each month, the provider may be a little more understanding. Of course, you will need to ask about any fees that may be put in the place for this limit to be extended.
Gaining more on an overdraft is also another option and could be less expensive than taking out cash advance loans. Your bank will already have a relationship with you and will be able to look into your spending. If you never go into the red, you will find that a bank will be happy to lend you the money because you will have already proven to be financially responsible. However, if you regularly dip into an unapproved overdraft or you regularly ask for the approved overdraft, you may find that the answer is no or that you will struggle to keep the rates as low as cash advance loans.
Cash advance loans should be treated as the resort between these steps and taking out a larger bank loan. They should also be treated as if you were borrow money from your employer until your next payday. You should always pay the money back at the end of the month so that you can avoid the exceptionally high interest rates and doing some damage to your credit rating.
In fact, used correctly, cash advance loans could help you improve your rating and your credit score. You will be able to prove that you can borrow money and that you are able to pay it all off when you need to. This shows that you are sensible and responsible, and are therefore a lower risk.
Use the cash advance loans wisely and only take out the amount that you really can afford. There will be limits set but just because you can take a 500 dollar loan does not mean that you have to take it, especially if you only need 50 dollars; this is a trap that many fall into with cash advance loans.