You might think that you’d never need to apply for a cash advance, but your financial circumstances can change faster than you expect. Even people who are extremely responsible with their money could find themselves in a situation where they need some extra cash before their next payday. Available in amounts ranging from $300 to $1,500, a cash advance can make a significant difference during these times of need.
- Need Help Paying Bills
Sometimes, bills for rent or utilities will be due well before you get your next paycheck. The consequences of missing a payment can be significant. Not only do most vendors tack on additional fees for late payments, but even a single missed payment can hurt your credit score. Go too long without making a payment, and you could get kicked out of your apartment or have your power shut off. Avoiding this wide range of serious consequences is a big motivator for getting a cash advance, which doesn’t even involve a credit check.
2. Unexpected Emergency Expense
Life has a way of throwing curveballs when you least expect them. For example, if you get in a car crash on the way to work, you might suddenly find yourself needing to pay for expensive repairs. You might also have to get a rental car while your vehicle is in the repair shop. Such incidents can significantly complicate your daily routine — and your finances. A cash advance can at least make the financial side of things more manageable.
3. Avoid Overdraft Fees on Checks
Few things are more embarrassing than writing a check (either for a bill payment or to a friend), only to realize you don’t have enough money in your checking account. When the recipient attempts to cash the check, they won’t be able to receive the payment. Your bank will hit you with overdraft fees. You could also end up with penalties from the organization you were trying to pay. This will most likely impact your credit score as well. A cash advance will help you put enough money in your checking account before the recipient attempts to cash the check.
Protecting Your Finances
When used wisely, a cash advance can protect your credit score and help you avoid other negative consequences of missed payments or insufficient bank funds. As with any other loan, you then have the responsibility to pay off your cash advance in a timely manner. Budgeting appropriately will allow you to do so while also starting the process of building up an emergency savings fund.
