“Cash advance” is a term used to describe several types of small-dollar financial products or services. Cash advance loans are designed to help you get the cash you need in emergency situations. Many of these loans are versatile and can be used for many different reasons, such as unexpected medical or vet bills, emergency home repairs, car repairs, and so on. They can be found online, through apps, or at storefront locations. Although online cash advances are becoming a more popular option as they become a more widely available type of loan.. 

Cash advance loans are fairly straightforward, and aim to provide extra cash to help you before your next paycheck. Taking out a cash advance loan is meant to help borrowers get back on their feet. But if you don’t do your research and find a safe and trustworthy loan they can lead to late fees, high rates, or even debt collection. 

What Is An Advance Loan?

The term “cash advance” can be used to describe a couple of methods of short-term borrowing that have a mutual purpose—quick money in times of need. Nowadays, there are many ways to get a same day loan. But whether you get your loan at a storefront or choose a cash advance online, the same rules apply. So make sure you know the details of your loan and lender before signing on the dotted line. 

There are three types of cash advances: cash advance loans, credit card cash advances, and employer cash advances. In contrast to the other two cash advances, employer cash advances don’t fully qualify as traditional loans. You may also hear the term “merchant cash advances,” but these are basically alternatives to small-business funding if you own a company. For our purposes, we’ll be focusing on cash advance loans and credit card advances.

An employer cash advance technically is borrowed money, but it doesn’t necessarily need to be returned. The reason is simple: you’re borrowing from your own paycheck; the money is just given to you by your employer sooner than you would usually get paid. This can be a good way to avoid traditional loan fees, online apps, and a loan application process. But one of the cons to this is that it could strain your relationship with your employer if you do it too often.

Generally speaking, cash advance loans are intended to provide you with money to tackle sudden or urgent expenses immediately, before your next paycheck arrives. When you’re in the midst of a financial emergency an online cash advance or other type of online loan can potentially help out. So it’s important to know the difference between all the online loans available to you. 

You may also hear cash advances referred to as payday loans, cash payday loans, or payday cash advances. Read on to learn more about the distinctions between these online loans. 

Loan VS. Credit Card Advance

To apply for a payday cash advance, or payday loans in general, you would simply need to write a check dated for the day your next paycheck will arrive, and then apply with an online or storefront lender. The amount you put down on the check is the amount you want to borrow, with the addition of the lender’s fees and interest. After that, you would get the money in cash or transferred to your account to spend it however you wish, usually within one or two business days. Keep in mind that payday advances can come with extremely high interest rates and fees. And they can often lead borrowers into a cycle of debt that’s difficult to escape. 

Even if you know that your next paycheck will cover the costs, a cash advance may not be the safest way to take care of an unplanned expense. While it may be good to get a loan without making a long-term commitment, it could also lead to more debt and fees in the future. And if you have a decent credit score you may qualify for another type of loan with better rates or a line of credit with more flexibility. 

The process of getting a credit card cash advance is similar to how you’d normally use a credit card, except you will withdraw the money from an ATM. You simply insert the card, choose the amount for withdrawal, and claim your money. Some banks also allow you to perform a credit card advance from your online bank account or their banking apps. One of the main differences when it comes to a cash advance, whether it’s in person or through an app, is that unlike with a debit card, you’re not actually withdrawing any of your own money—you’re borrowing a sum that you’re expected to repay. And if you’re in a pinch, it may be better to use a credit card cash advance than to overdraw on your checking account and incur an overdraft fee(s).. Even having overdraft protection isn’t always sufficient if you’re consistently taking out too much money from your bank account. 

It’s important to note that cash advances often don’t offer grace periods like you would get with other types of funding. The interest starts accumulating immediately.. With regular credit card purchases interest doesn’t usually begin accruing for about 30 days, but that will depend on your specific card. 

Another factor to consider is the interest rate, whether you’re taking out a loan or a credit card cash advance. On average, the APR (annual percentage rate) for your credit card will hover around 16%, whereas some cash advance loans bump that number up as high as 24% or more. However, this number isn’t alarming when you remember that cash advances are supposed to be returned fully with your next paycheck. Just remember to make your credit card payments on time! This is the best way to manage your credit cards, and to keep your credit score strong. Oftentimes, payments can be made in person, online, or through a designated banking app. A good rule of thumb is to only use your credit card if you’re sure you can pay off the purchase within 30 days. 

Think of it this way: for every $100 you borrow, you will typically need to pay about $5–15 extra to a lender. So be sure to approach these loans carefully, as taking out a cash advance loan can be risky if you don’t find the right loan or lender. It’s important to make sure any loan you’re considering fits into your budget before filling out an application. A risky and expensive loan will only lead to more trouble than it’s worth.

How To Stay Safe When Taking Out A Cash Loan

As with making any other impactful decision in your life, the process of taking out a loan should be approached with caution. Always make sure you have the financial education and data you need to make the best decision. Here are some steps to ensure everything runs smoothly once your loan application is approved:

Consider the term of the loan, the cost, any fee the lender charges, and the method of paying it back, the interest rates, and the extra fees that might come up later. Before opting for a loan, you should be confident that you will be able to comfortably pay it back on time. This is true for any type of loan, from an installment loan, to a title loan, to a cash advance.

Can you try cutting out some expenses? Are you already budgeting? Is there another, less urgent project you were saving money for that could stand to wait a while? Even if you can decrease the amount you borrow by a little, it can make a big difference overall. And you’ll avoid overspending on an interest payment or other fee that’s difficult to repay.
List all your options and see which one makes the most sense for your unique situation in the long run. Lenders have distinct conditions and offers, so make sure that the loan you get is the right one for you. If it feels risky, keep researching and find a safer alternative. Don’t be fooled by introductory offers or a flashy app. Do your research, ask about their overall APR fee, and any other costs. Then make the best decision for you.
Lenders who are patient and upfront about what they offer are the ones you want to borrow from. To take an extra measure and ensure a good deal, you can always contact a professional and have them guide you through the process. They may even answer questions over the phone, through a chat feature, or on their app.

Still have some unanswered questions? Reach out to us at CreditNinja and we’ll be sure to get back to you with reliable information. Don’t be one of the thousands of people in America that is struggling with unexpected expenses. Allow CreditNinja to get you the cash you need. 

Just remember, payday loans or a cash advance might seem like a good idea, but many payday lenders would be considered predatory lending. Keep your eyes open for extremely high interest rates, extremely short repayment periods, and hidden fees or confusing terms. These are tell-tale signs of predatory payday loans. If you normally rely on payday loans, it’s time to consider CreditNinja. 

At CreditNinja, we offer personal loans for all of life’s unexpected expenses. Our loans are a great alternative to payday loans – apply for an online loan – and if approved, your funds will likely be deposited into your checking account by the next business day.¹ Don’t settle for predatory payday loans. Get the loan you deserve at CreditNinja.

Frequently Asked Questions

Apply & Check Eligibility

A cash advance loan is only a few clicks away. It will only take you a few minutes to fill out our online application form and once you have submitted the information required you can receive a decision as soon as the next business day.

Read & Sign Your Loan Agreement

Our loan agreement states all the terms and conditions when you get a cash advance loan including the repayment period, interest rate, fees, and amount of each installment.
You can read it, sign it, and send it over to us. Once we have received it you can get your money and be on the way to meeting your financial needs.

Get Funded & Ready to Repay

The money from your cash advance will be deposited directly into your bank account within the next business day after we receive your signed loan agreement.

Cash advances are typically extended for short periods and each installment will be debited directly from your account as well on the date stated on the loan contract.

While sometimes these terms are interchangeable, cash advance loans are not always the same as payday loans. Unlike payday loans, cash advances are typically used to fulfill short-term cash needs, and they can be obtained through your employer, or even companies that offer tax return cash advances. 

Payday loans may be paid back over a longer period of time than a cash advance loan, depending on the lender and the type of cash advance.

If you’ve already applied for a loan in the past, you can find out if you are eligible to reapply by logging in to your account. There you’ll find a button that will prompt you to reapply.

The maximum amount of loan money varies depending on your state of residency and your creditworthiness – measured through your credit score and other relevant financial information.

A single loan can range anywhere from a few hundred dollars up to a few thousand.

Yes. We offer both short-term loans and long-term loans, like unsecured personal installment loans.

Once you’ve been approved for one of our advance cash loans online, you will receive an agreement that you must read, sign, and submit online.  Once we have received that document the money will be deposited in your bank account as soon as the next business day.
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