Getting a cash advance loan is a great way to help you get through a financial emergency. The process of applying for one from your employer or credit union can be quick and easy.
If you want to get a cash advance til payday, you need to make sure that you know what you’re getting into.
In this article, we’ll tackle the basics of cash advances so that you know what to expect.
What this article covers:
- What Is Cash Advance?
- Pros and Cons of Cash Advance
- Where Can I Get Cash Advance Until Payday?
- Cash Advance Fee From Credit Cards
- When Can I Pay My Cash Advance?
- Reasons Why Someone Would Get a Cash Advance
What Is Cash Advance?
Cash advances are short-term loans that can be used for any number of things: paying rent, buying groceries, or even additional cash for getting a new car.
Employers have cash advance offers, so visit your HR and ask if you qualify for one. Usually, you can get cash advances from credit unions and other apps available online, which you should repay on your payday.
If you have bad credit or are just looking for a fast and easy loan, a cash advance from an employer will help you get the money you need quickly without all the hassle of applying for a regular loan.
Cash advances are also known as payday loans, typically small loans secured against your next paycheck. Also, there are payday loans that accept everyone.
The fees associated with these types of loans can be high, but they’re still much lower than most banks charge for credit cards.
Several types of cash advances are available in Australia: payday loans and cheque cashing services, as well as bank overdrafts and overdrafts from credit unions.
Each option has its own pros and cons, and there’s no one “best” way to get a cash advance. Instead, it’s best to compare your options based on your financial situation and needs before deciding which path is best for getting the funds you need when they’re most valuable.
Pros and Cons of Cash Advance
Pros
- No credit checks. Most cash advances don’t use your credit score to determine whether they will give you the loan. This makes them great for people with bad credit or no credit.
- Fast and convenient. You can apply for a cash advance online through your computer or smartphone, so there is no need to visit a bank or go anywhere besides home or work to access your money.
- For all purposes. You can use a cash advance for almost anything. Whether you want to pay for school books, start a business, or pay rent. You can even get as low as a 200 cash advance.
Cons
- High interest rates. Cash advances from credit cards have some of the highest interest rates around. You’ll be charged around 24% interest on your balance. On top of that, there’s about a 3% processing fee.
- Limited repayment options. Some cash advances don’t come with flexible repayment options. Usually, you have to pay back exactly what you borrowed plus any fees or face additional penalties from the lender if not paid on time.
Where Can I Get Cash Advance Until Payday?
There are several ways to get cash advance in Australia.
- Payday Loans. This is a good option if you need cash before your next payday. You can apply for one online or in person. Also, there are payday loans with no ID required.
Once approved, the funds will be deposited directly into your bank account within 24 hours.
- Overdrafts. If you already have an overdraft facility set up with your bank, then this is another option for getting cash advances in Australia.
Some banks will allow you to transfer money from your overdraft account as long as it has been set up for this purpose and you have enough funds available in the account itself.
- Credit Cards. Some credit cards allow users to withdraw money from an ATM. This can be used as a short-term solution while waiting for payday.
However, interest rates on credit cards can be quite high, so make sure you pay them off to avoid accruing additional interest.
Cash Advance Fee From Credit Cards
A cash advance fee is assessed when you make a cash withdrawal or use your credit card to make a money transfer.
A one-time cost is incurred at the time of the transaction, known as a cash advance fee. The minimal charge or a cash advance percentage is used to determine the amount. Usually, it’s 3% or 300$, whichever is higher.
You’ll be charged interest on your cash advance from the day you make it until the day you pay it off, in addition to the cash advance cost.
With your card, you could have an interest-free period that applies to purchases; it won’t apply to cash advances.
When Can I Pay My Cash Advance?
The best time to pay your cash advance is on your payday. This will help ensure that you don’t miss any payments and are not placed on a payment plan.
It’ll also help you avoid late fees, which can add up quickly if you’re consistently late with your payments.
Getting a cash advance online in minutes might tempt you to get one even though you can’t pay for it yet, so always think twice.
Reasons Why Someone Would Get a Cash Advance
There are many reasons why people seek cash advances in Australia.
Paying Bills
Getting a cash advance can help you pay your bills and expenses because it’s designed to be used in an emergency.
If you’re in a position where you need to get money quickly but don’t have time to wait for a paycheck or direct deposit, then this type of loan is for you.
Holiday Expenses
If you’re short on cash and need to buy presents, pay for flights and accommodation, or even get some delicious food for your holiday celebrations, getting a cash advance can help you.
This is especially true during the Christmas season. You know how busy you can get during this time, and you might expect some guests to come over.
A cash advance will help you buy ingredients, decorations, and such.
Additional Capital for Business
If you’ve discovered that the business loan you took out isn’t enough to cover other expenses you didn’t expect, a cash advance can help.
However, ensure that you repay it immediately so that you won’t be paying for two loans in the future.
Conclusion
Getting a cash advance in Australia is a simple and easy process, but it’s crucial to remember that these are loans, not gifts.
Before you take out a loan, make sure you understand the terms and conditions of the loan and be honest about your financial situation.
If you’re unsure whether you’ll be able to pay back the loan on time, it may be better to wait until you’re sure you’ll have sufficient money available on your payday before applying for a cash advance.
Was the guide helpful? Check out these extra resources to delve deeper:
- How to Get Very Bad Credit Loans With Guaranteed Approval in Australia
- No Paperwork Loans for Bad Credit
- Getting Pay Advance in Australia
- Personal Cash Advance Loans: All You Need to Know
- How to Get Payroll Loan Advance in Australia
- How to Take a $15,000 Bad Credit Loan
- How to Get a $1000 Loan with a Bad Credit
- How to Get a $2000 Bad Credit Loan in Australia
- I Need a $25,000 Loan with Bad Credit – Do I Qualify and How to Apply?
- How Can You Benefit from Bad Credit Payday Loans with Instant Approval?
- I Need a Loan Urgently but Have Bad Credit
- How to Get Small Student Loans for Bad Credit
- $300 Loan with No Credit Check
- No Credit Check Loans: $5,000
- Holiday Loan with No Credit Check