Cash Advance Loans

It is undeniable that many of today’s loans have become very accessible. For instance, if you want a cash advance loan, you simply need to procure a few requirements, fill up a form and submit it to the lender. You can even do it online. However, this does not mean that getting a loan is always the best solution to every financial problem. If you’re going to use the loan for all your wants and needs, you could go broke very fast with a mountain of debt to your name.

Cash advance loans are there for a reason: to help you get through until your next payday and hopefully pull you up on your feet from a financial distress. But if a financial distress means not having enough money for a week’s worth of Starbucks coffee or every other night dinner in a fancy restaurant, then you need to sort out your priorities. Abusing the ability to get cash advance loans anytime can spell financial disaster for you in the long run. Here are the reasons why.

Cash advance loans have very expensive interest. Paying somewhere between 10%-30% interest off the principal amount can get burdensome. The interest adds up when you are not able to pay on the agreed date, making it even more stressful to pay the loan. Never take a loan if you don’t really need it.

These loans are not the answer to your wants. Imagine getting a cash loan to fund a fun vacation only to discover that you have outstanding power bills that are due. You wouldn’t want to come home to a dark house with no electricity after the escapade. It is best to define when a situation warrants a cash advance loan. Otherwise, save for it.

Defaulting on your cash advance loan can ruin your credit score. How you perform with your payments of the loan will also be reflected on your credit score. If you want to keep it clean, pay the cash loan on time and in full. If not, it may be better to seek other ways to get funding that won’t be reflected on your credit history – say doing overtime work or getting a second job. You have to be personally committed to this decision as this can impact your financial future.