Cash advance loans allow a borrower to get a set amount of money upfront, or an “advance,” and pay it back later. They come in many forms including payday loan cash advances, credit card cash advances, employer cash advances, and more.
Cash advances come in a variety of forms, each with different terms, conditions, requirements, and interest rates. If you’re in need of some quick cash, you may be able to get it from a cash advance. But make sure that it’s the right one for your specific situation.
One of the most common cash advances would be a payday loan cash advance. These are usually just called “payday loans.” But they may go by different names. A payday loan cash advance is a short-term, small-dollar loan that a borrower pays back by their next payday.
Payday loans sometimes carry high interest rates, which can make them difficult to pay back within such a short amount of time (usually about two weeks). They’re typically used in emergency situations by borrowers with lower-than-average credit scores. These borrowers may not be able to get approved for a traditional bank loan or credit card.
Another type of cash advance loan is a credit card cash advance. This works in the same way that a debit card does at an ATM. But instead of using your debit or check card to pull money from your bank account, you use your credit card to withdraw cash. This cash will be added to your credit card balance.
The problem with credit card cash advances is that the interest rate can be high compared to normal credit card purchases. Plus the interest starts accruing immediately, as opposed to normal purchases which have a grace period where interest won’t accrue.
An employer cash advance means your employer fronts you a set amount of cash, and then takes that amount out of your future paycheck. The terms and conditions for these will vary depending on your specific employer. If you have a flexible employer, they may not even charge you interest on the amount you borrowed. But this can be risky and potentially threaten your job if you can’t fulfill the work necessary to repay the amount.