There are times within the month when all of a sudden, you are in immediate need of cash. You become overwhelmed with bills, and there is nothing in your bank account, and the next best option is getting a cash advance. When you are in this situation, you can accept cash from any lender without considering factors like interest rates.
A cash advance can save your day. It is easy to apply because you instantly receive the money, and no paperwork is needed. Got any bills you have to pay? Does your bank account balance read zero?
Here are some of the factors you should consider to make the right decision for a cash advance option:
The Interest Rates
This is perhaps the first thing you should check. Typically, interest rates for fast short-term loans are high than other credit options. Fortunately, many companies have ventured into this industry, bringing stiff competition to the borrower’s advantage. To attract more customers, some of these companies have slashed their interest rates. There are even companies with interest rates lower than what is offered by credit card companies.
Loan Processing Time
When you have cash emergencies, you might need the money to be deposited in your account within 24 hours. It would be best if you went for an option that will not keep you waiting as you end up wasting time and accumulating more bills. Since we are talking about cash advance, your account should be credited within the quickest time possible.
First, before you apply, inquire about the company’s turnaround time. Crediting should be done within a day. If the application process is long and tedious, choose a company with a simple process.
Availability of Alternatives
You should not immediately file your application on the first cash advance option you encounter. For starters, the interest rates and the turnaround time can vary. Sometimes you might think you are getting the best deal from the lender you have chosen, only to find out later that there are companies with even better deals. Some companies have fixed interest rates, while others have rates varying with the loan tenure.
Before signing anything, it is crucial to understand all the cost implications. A company can charge low interest rates but outrageously charge high penalties for late repayments. If you are sure you can repay the loan in time, then you can go for the option. If you are not sure, choose a company that charges the lowest late repayment penalty.