PERSONAL FINANCE BLOG

Money shouldn´t stop making your plans come true. Learn how personal loans can help you!
online cash advances
24 May 2019

The Different Types of Online Cash Advances Explained

There’s nothing quite as stressful as finding yourself short on cash when you’ve got bills to pay.

No matter how well you plan out your finances each month, you cannot prepare for every curveball life may throw at you. That’s the nature of life, and when you’re on a restricted budget, those surprises can be devastating.

Unexpected expenses, such as medical bills or auto repair, can set follow you around for years if you don’t take care of them immediately.

Fortunately, there are several ways to get the cash you desperately need fast.

A cash advance is a quick and easy bad credit loan to get the money you need no matter what your situation may be. They can be even easier to get than quick loans in certain circumstances. There are several different kinds of cash advances available, so you are sure to find a way to get funds that suits your circumstance.

If you need to raise emergency funds fast and are considering getting a cash advance but aren’t sure which type is right for you, don’t panic. We’ve got you covered.

Here are the different types of online cash advances you should consider, and what you need to know before making your final decision.

Credit Card Cash Advance

Credit card cash advances are the most popular form of cash advance, and for a good reason!

If you’ve ever used a credit card, then you already have a basic understanding of how this type of cash advance works.

When you pay for something with a credit card, you’re not paying for that object out of pocket. You’re essentially paying for it with the promise that you will pay for it later on.

Then, once your credit card bill comes in, you pay what you owe or a portion of that amount out of pocket. Depending on the card you have and how much you’re paying, there could also be an interest rate attached.

A credit card cash advance works almost the exact same way.

Rather than pay for an item with your card, you borrow cash from your line of credit, which you will have to pay back at a later date.

This method is one of the quickest and easiest ways to get emergency cash. Depending on your bank and the card you have, you could potentially withdraw the money you need from an ATM.

Like with all cash advances, there is a downside to credit card cash advances.

There can very high-interest rates associated with this kind of cash advance. So, it’s essential that you read the fine print before you try to get any money.

Title Loan

Do you own a car or motorcycle? Then you may be able to use it to get the emergency cash you need.

With a title loan, you can get money by using your car or motorcycle as collateral. Then, like with every other loan, you pay back what you borrowed over a set period of time.

The obvious downside to a title loan is that if you are unable to pay off the money you owe, you can lose your car.

That said, title loans, unlike payday loans, usually have a much longer turn around time. So, you won’t have to worry about paying back the money you borrowed immediately.

Installment Loan

Installment loans are different from other types of loans in terms of the amount of time you get to pay back the loan. While other cash advance loans might require you to pay back the loan in a single payment, like a payday loan, or over a short period of time, installment loans are built to get paid back over multiple installments, often over the course of years.

Installment loans usually give you the most amount of time to pay them back. That said, like other types of cash advances, there can be hefty interest rates attached to them if you aren’t careful.

Payday Loan

Payday loans are the second most popular form of cash advance and can be one of the most dangerous if you aren’t careful.

When you get a payday loan you are essentially borrowing money from your future-self. So, while you may get the cash you need to cover your expenses right now, you may come up short again next month.

When you get a payday loan, you are borrowing money out of your next paycheck, usually with interest.

Payday loans online are generally referred to as a “short term cash advance” because the turn around time on them is very small. Once you get your next paycheck, you better be ready to pay off the entirety of what you owe.

If you are in a serious pinch and are in a position where you can safely sacrifice a portion of your next paycheck, then a payday loan can be very beneficial.

You can usually get a payday loan fairly quickly, and don’t have to worry about jumping through too many hoops to get the money you need. Which, can be lifesaving for someone in a desperate enough situation.

That said, as with any sort of loan, it is vital that you read and understand the fine print associated with payday loans.

If you are unable to pay your loan back on time, this kind of cash advance can become a highly expensive headache very fast. So, exercise caution before signing anything.

Different Types of Online Cash Advances

Life is chaotic, unpredictable and unfair. It’s impossible to predict what unforeseen disasters tomorrow may hold.

You can try to prepare yourself for the occasional emergency. However, you should understand that things are out of your control and there may come a time when you need to ask for help.

When used properly, a cash advance can be a saving grace. It can get you the funds you need to cover surprise expenses and give you the freedom to get on with your life as quickly as you can.

That said, cash advances can also pose a serious threat if you aren’t careful.

Online cash advances are not one size fits all. There are several different kinds to choose from, it all depends on your circumstances.

Now that you know what kinds of cash advances are available, it’s time to make a choice.

Need cash fast and aren’t sure where to turn? We can help!

We have plenty of resources to help you choose the best cash advance option for you and get the money you need right now. Check out our resource center to get started today! Here are some other articles you might find helpful:

Payday loan with a prepaid debit card – how to get one when you only have a debit card
Your guide to cash loans no credit check
Do cash advance loans hurt your credit score?
Understanding the types of emergencies that require cash loans