40% of the American population doesn’t have enough money in their savings account to cover a $400.00 emergency expense. That means that if a family member were to fall ill or a home improvement problem came up, 4 out of every 10 Americans wouldn’t know where to turn.
Fortunately, borrowing money is a viable solution to the problems outlined above.
Among the most popular ways, money gets borrowed are via payday loans with no credit check and cash advances.
But what’s the different between the two? Which is better?
To help give you a better idea of whether a cash advance or payday loan is right for you, below, our team breaks down both.
What Are Payday Loans with No Credit Check?
A same day payday loan is a money borrowing product that lenders award to people who are looking to cover their necessary expenses between now and when their next paycheck comes in.
Payday loans with no credit check are excellent because, as their name suggests, good credit is not necessary to borrow the money you’re looking for. All you have to do is be 18 years of age, have provable income, and a checking account.
Payday loans charge interest and fees to borrowers that vary from lender to lender. For that reason, you’ll want to carefully assess all loan products before accepting them.
What is a Cash Advance?
Cash advances differ from no credit check payday loans in that the term is applied to a wider variety of small personal loan products.
In one instance, cash advances are used to describe a product identical to what you’d get from a bad credit loan provider. You’d borrow a specified amount of money in line with an upcoming paycheck, then, on your payday, you’d repay the amount you borrowed plus interest and fees.
In another instance, cash advances refer to the act of borrowing cash from your credit cards. Pulling cash from your credit card via a cash advance typically comes with interest rates much higher than what you’d incur when you make standard credit card purchases.
Finally, cash advances can refer to obtaining an advance on your paycheck from your employer. This is an arrangement that can be made on a case by case basis and funds borrowed are deducted from future checks, typically interest-free.
Which Way to Borrow is Best?
Payday loans and cash advances can benefit different borrowers in different ways so it’s difficult to prescribe which type of loan is better. If you can obtain a cash advance directly from your employer, that’s probably the way to go.
Since most people can’t do that, personal loans no credit check are an excellent alternative in that they make borrowing money simple.
Wrapping Up The Difference Between Cash Advances and Payday Loans with No Credit Check?
As we’ve described above, there are similarities between payday loans with no credit check and cash advances. Where they differ is in the wide application of cash advances and the fact that no credit check payday loans don’t need to run your credit in order to get you the money you need.
If you’re looking for a payday loan that doesn’t require you to have good credit, our team can help.
We offer loan finding tools that can help you identify potential lenders whom, upon their approval, can award you the money you need in as little as 24 hours.
Be sure to read up about installment loans for bad credit and other personal loan products in the Bonsai Finance learning center!