Chicago, ILL. (Vocus) July 17, 2009
The controversy surrounding cash advances typically comes from the high interest rates associated with the cash advance. However, the high interest rates are necessary because the loan amounts are typically low and the time period to pay back the loan is short. In addition, the fast cash advance lender takes on a high amount of risk by not requiring collateral or a credit check. As such, there are advantages to a same day cash advance, especially when the borrower has bad credit. CashAdvanceAlliance.com points out these positive aspects.
A cash advance should only be used for emergency funds or just to help make ends meet between paychecks. A same day cash advance can help families who need immediate cash but have nowhere else to turn and will not qualify for traditional lines of credit, such as a credit card or a bank loan. They can get the money they need instantly, without a credit check, and with minimal requirements.
The nature of the fast cash advance allows people with bad credit to help rebuild their credit score. Every time there is an inquiry into a person’s credit history, their credit takes a hit. Since there is no credit check involved with a cash advance loan, the loan will not reflect on a person’s credit report. Also, a person will not be adding additional charges to a credit card, which does reflect on their credit history. The less amount of available credit a person has on their credit report, the more their credit score drops.
In addition, a person who takes out a cash advance loan can avoid over-the-limit fees, maxing out a credit, overdraft fees, bounced check fees, interest charges, and additional expenses related to not having enough cash or credit available. Rather, a person can pay a onetime fee to take out a cash advance loan and avoid the aforementioned costs.
When a person is late on a credit card payment, their credit score takes a dive and their interest rate can skyrocket. By taking out a short term cash advance loan, these credit issues can be avoided and a borrower can actually save money in the long run.
Many people who have bad credit find the application process for a loan to be overwhelming and embarrassing. However, online cash advances offer a discreet application process. The application can be filled out and approved online with no need to go to a store front lender or an office store to fax in documents. The information on the application is processed confidentially and expediently, with the funds deposited directly into the borrower’s bank account for immediate use.
Although an online cash advance can be helpful for occasional use to avoid cash shortage problems, these are not intended as a part of a long term financial plan. If a person feels the need to use a cash advance often, it is advisable to seek assistance from a reputable credit or debt professional.
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