If you find yourself in a situation where you need immediate funds to cover an unexpected expense, it’s important to consider all of your available options. One such option is a cash advance. Consider a few key pieces of information that may help you determine whether a cash advance is the best choice for your circumstances.
What Is a Cash Advance?
A cash advance is a loan that enables you to borrow money for a short period of time. There are multiple types of cash advances. For one, you may be able to find a cash advance lender Mississippi that provides payday loans. These loans can vary in amount and usually are repayed as soon as you get your next paycheck.
If you use a credit card, you may also be able to use this resource to take out a cash advance. This loan typically is handled separately from your regular credit card purchases. If you own a business, you may be able to benefit from a merchant cash advance, which is repayed using profits from future credit card sales.
What Are the Benefits?
There are two primary advantages of cash advances. First, they can be obtained quickly. This may be an issue of great importance if you need money to deal with a time-sensitive expense. Second, you often can receive a cash advance even if personal credit problems would prevent you from being approved for a traditional loan.
What Is the Downside?
Because cash advances are so flexible, they normally come along with high interest rates. Payday loans, in particular, may charge interest rates that exceed the total amount you borrowed. Likewise, credit card companies start to charge interest on cash advances starting at the very moment you withdraw the money.
Cash advances have significant pros and cons, but if you find yourself in a serious financial emergency, they may be a good solution. Be sure to consider your situation carefully so that you can be sure to repay your short-term loan promptly.
