Are cash advance loans for celebrations a good idea? We have all come up a little short during holidays. Even more common is forgetting birthdays or anniversaries and discovering too late that our savings is just not up to par for the gifts and other expenses common to holidays. That is at least true for people who have somehow or another managed to keep any savings or avoid a personal financial crisis after the global Covid pandemic and the massive business shut down.
Anyone who has ever forgotten a birthday, or an anniversary may also be all too familiar with the consequences for such an action. There is a rather funny meme going around about how my wife blames me for messing up her birthday – but I did not even remember it was her birthday. Yeah, you can imagine that did not go over very well with the wife.
Even more tragic to some degree, is forgetting the birthday or other special occasion for children. While it is generally easy to appease them and promise them that “next time” it will be different, the heartache and pain of being forgotten by a parent can be overwhelming to small children. A small cash advance loan to overcome such a possibility is sometimes money that is very well spent.
What Are Cash Advance Loans?
Cash advance loans are generally signature loans, or short-term installment loans that do not require any collateral to secure the loan. Secured loans are those that generally require collateral to serve as security for the loan. Signature loans are those loans that require only the contractual obligation between the borrower and lender to secure the loan. They are generally short-term installment loans because they only require a short time to be repaid in full.
How Do Cash Advance Loans Work?
Short term installment loans like the signature loans for a cash advance tend to be based largely on the income of the borrower. There may be some variables with some added expenses for bad credit loans, though this depends on whether or not the direct payday lenders are going to run a credit check.
Surprisingly enough, many people have better credit than they think, and while it may be better to look for cash advance loans with no credit check needed, other options may be more financially sound for the cash advance borrower as well. It is always a good idea to research and shop all your options if you want to get the best deals on cash advance loans every time that you apply.
Are Cash Advance Loans Expensive?
Expensive can be a relative term. There is certainly an important need to look at the actual potential for financial loss from using cash advance loans, but when you consider them against other options, they tend to be surprisingly affordable, even for the thriftiest of consumers.
Some of the other options can be even more expensive, not only financially, but in terms of emotional costs brought about by the stress everyone goes through while experiencing a personal financial crisis.
While that may sound facetious or even condescending at first glance, it is commonly true for reasons many people do not often consider when shopping for the best deals on cash advance loans online or off.
Is it Better to use Cash Advance Loans or Credit Cards?
Both credit cards and cash advance loans are heavily regulated by the federal government but the short term installment loans are further regulated at the State level where some credit card companies are not. Usury fees or “bad” and “expensive” fees generally are considered by law to begin at about 25% so many credit card companies will push the limit and charge 24.99% interest on any unpaid balance.
While there are some direct payday lenders who will charge excessive interest rates, it is surprisingly rare. Still, it is important to take at least some time and to look at all the options. This is commonly known as shopping but it can be an exceptionally difficult process when trying to get the best possible deals on cash advance loans.
We will reveal some shopping secrets to ensure you always get the best deals on cash advance loans later in this article. In short, if the unpaid balance on your credit cards is going to cost you more money than you would pay for a cash advance loan, it may be a better option to stick with the short-term installment loan rather than paying usurious credit card fees for a longer period.
Is it Better to use Cash Advance Loans or Pawnshop Loans?
Pawnshops tend to get around the interest requirements by charging flat fees for their loans, or loan fees. These fees may be charged as part of an interest payment or as a separate cost or fee for simple fast pawnshop loans. This is also one of the easiest ways for them to force you into a debt funnel where you are continually paying out money for fees.
It is estimated by the US government that roughly fifteen percent of all pawned items will be lost to the pawnshops, but believe it or not, this is not ideal for the lender any more than it is for the borrower. Like many financial institutions, the pawnshops make their money on the interest rates and loan fees, not from selling your Gramma’s anniversary diamond ring.
So how and why do pawnshop loans end up trapping so many people in unwanted debt cycles? If you owe me fifty bucks and you only have fifty bucks in your pocket, and I say you only need to pay me ten if you pay the full fifty back next week, you may very well be tempted to pay me the ten bucks now and worry about the fifty bucks later.
That is an oversimplification to be sure, but that is what the pawnshops do on a regular basis. By paying only the interest on your loan, and perhaps an additional small fee later, you can keep most of the money that you have in your pocket for you and maybe your family now. This may seem like a great idea now, does not bode well for paying the debt off in full or for your long-term financial health.
How do I pay off Cash Advance Loans?
Isn’t technology grand? What if you could remove the temptation and the excuses and have the entire loan payment process fully automated? Would that make it easier to pay off your debts on time and help you to avoid getting trapped in a cycle of debt?
If you are smart, you are going to be shopping for the best deals on cash advance loans online. Offline shopping with direct payday lenders may be tempting, but it can provide additional challenges that can be easily avoided as well.
If you do shop for the best cash advance loans with direct payday lenders you will probably see whether they require a credit check, and you will see all of their interest rates and fees clearly posted. What you will not see is any information allowing you to compare rates with their competition.
Furthermore, if they are not offering bad credit loans with no credit check required, you may end up with more credit inquiries, and paying even higher interest rates as a result. All of this can be avoided by shopping for the best deals on cash advance loans with companies like Safe Loan.
Having all of the processes automated makes the entire process easier and virtually pain free. Your money from your cash advance loan is directly deposited into your bank account, usually on the very same day, and your payments are automatically withdrawn, making the entire cash advance loan process quick and painless.