Is Check Cash Advance For You? |
By Christopher Young |
|
Before deciding to use a check cash advance, you must decide if it
is the right option for you. There are many situations in which
a cash advance would be beneficial. However, there are times
when it would not be the most appropriate or advantageous
decision for you. You must weigh all your options carefully
before choosing a check cash advance.
One of the first
things to consider when choosing a check cash advance is the
total amount of money needed for your situation. Typically, a
check cash advance offers up to $1,000 and in some situations as
much as $1,500. The check cash advance is only supposed to give
you an advance on your regular income check until your next
payday. Arrangements are made at the time of receipt of your
initial loan for repayment of that loan on your next pay period.
Additionally, the method of repayment and a repayment date are
mutually agreed upon at the time of disbursement of your initial
loan.
Another thing to consider before applying for a
check cash advance is your personal credit history. Typically,
with check cash advance systems, there is no credit check. This
means even if you have no credit or bad credit you can still
obtain a loan. So, check cash advances eliminate the possibility
of being humiliated due to rejection for no credit or bad
credit. However, if you fail to meet the agreed upon terms for
repayment, then your personal credit may be adversely affected.
Prior to receiving a check cash advance, you may want to
consider whether your lack of cash is temporary or if it will be
a recurring situation. If it is a temporary problem such as a
wrecked car, a sick child, or holiday expenses, then a check
cash advance could be a great option for you. However, if you
expect the lack of money to be a regular occurrence just to meet
regular bills, then perhaps you should rethink applying for a
check cash advance and opt for a conventional loan instead. If
you decide to apply for a check cash advance then be prepared to
pay a high interest rate for the loan. If the advance cannot be
repaid in full by your next payday, then you have the option to
roll that loan over into another loan. Be mindful that if you do
so, the interest accrues continuously until the loan is repaid
in full. If this sounds like too much of a risk to take then you
may want to rethink some of your spending habits, or sell a few
personal possessions in order to reduce your expenses or
eliminate debt.
If you have decent credit, then a credit
card loan may very well be more appealing than a check cash
advance.
Before resigning yourself to a check cash
advance, please consider all your options and weigh each one
carefully against your situation. Here are some things to
consider when debating whether or not to take a conventional
loan or a check cash advance loan.
CHECK CASH ADVANCE
LOAN
Minimal paperwork with quick processing time
No
credit check
Typical $1,000 award
Higher interest rates
apply
Quick repayment 1014 days
CONVENTIONAL LOAN
Standard forms to complete with typical 7-10 business day
processing
Credit check and personal references
Significantly varied award amounts
Interest rate
fixed/variable
Incremental monthly repayment |
|
|
|
|
|
