Cash Advance vs. Credit Card Advance
How does a credit card cash advance work? It’s a loan that’s similar to getting a cash advance from a lender. Many credit cards feature pre-approved cash advance limits that allow you to withdraw money from a line of credit. For example, a bank may issue you a credit card with a $2,500 credit limit and a $250 cash advance limit. The credit limit is usually for everyday purchases and bills, while the cash advance limit allows you to get a cash advance – up to the limit allowed -- by presenting the card at a bank or an ATM machine.
Credit card cash advances can be a convenient way to get quick cash, and must be used responsibly. While the occasional emergency happens through no fault of your own, carefully using a credit card cash advance may be able help. Make sure you are able to pay back the cash advance on time – not only will it help you maintain a cash advance limit in case of another emergency, but you’ll also be protecting your credit score. While it’s possible to pay credit card cash advances with monthly payments, over time the finance charges may prove costly.
Also, many people use regular cash advances online from short term loan lenders. One of the advantages of using an online cash advance from a lender versus a credit card company is that you may be able to get a short term loan for an emergency even if the suffering economy has caused you to have bad credit, preventing you from getting approved for a credit card.
That’s where we come in. Money Mutual is a way to connect with one of the largest diverse groups of lenders in the country to help you get the money you need in as little as 24 hours. We are not a lender nor do we broker loans, but instead help you focus on connecting with a lender that may be able to helpin your emergency.
The qualifications for a cash advance online can vary from lender to lender. In most cases, you’ll be asked to provide a recent pay stub or other proof of income, and you may be asked to provide your banking information so that the lender can automatically withdraw repayment for the loan on the due date. Depending on the lender there may be some other requirements as well. Take the time to know all the qualifications that are needed, and ask questions as necessary.
“ An alternative to the traditional cash advance is to get a cash advance through credit cards ”
Cash advances from short-term loan lenders are also known as payday loans because oftentimes you are expected to repay the loan on your next payday.
All lenders are required by law to inform you about the interest rate on our loan and how much you will pay in finance charges. You should not accept any cash advance until you fully understand the terms of your offer, so take the time to read all the terms and conditions of your loan before you accept it. Remember to always use cash advances responsibly.
There are different ways to get a cash advance, whether it is through a short-term lender or a credit card cash advance. Make sure you take the time to carefully review the terms and conditions of your cash advance so that you make sure you don’t borrow more than you can pay back.