What Are The Benefits Of A Cash Advance Loan?

Cash advance or payday loans are one of the quickest ways to get hold of
money when you are short of funds. They are predominantly used to cover your
expenses until your next payday, when you pay back the loan in full. If you
find yourself short at the end of the month and need cash fast, then you
should look at getting a cash advance loan. Here are some tips about the
benefits of a cash advance loan.

What is a cash advance loan?

A cash advance loan is a short-term loan that is meant for people who need
cash quickly due to a temporary shortage of funds. Usually, you can get hold
of a cash advance or pay day loan within a few hours of applying. You are
simply required to be in regular employment and fill out a few bank details.
You can borrow anything up to about £500 depending on your needs and job
circumstances.

No credit checks

One of the major advantages of cash advance loans is that no credit checks
are required for you to get hold of the loan. All you have to do is provide
details of your employer and you can get hold of the loan. This makes the
application process extremely fast and helps you to get the money when you
need it most.

Great for emergencies

If you have trouble getting hold of other loans or credit cards and have an
emergency situation that requires money, there might not be time to find the
funds elsewhere. A cash advance loan gives you the opportunity to get hold
of the money you need quickly and at a relatively low cost.

Costs of cash advance loans

Although cash advance loans are relatively cheap if you pay back the loan
quickly, you are still paying for the convenience of being able to get money
quickly with very little checks. This means that you will pay a percentage
of the amount you borrow as a fee, usually around 10%. If you pay back the
loan when you next get paid at the end of the month, then this will be all
you have to pay. However, if you can’t pay this back, then you will be
charged again and again until you do. This could mean that in just 6 weeks
you will have been charged £90 on a loan of just £300. This can lead you to
get into a vicious circle where each month you have to get a cash advance
loan just to stay afloat.

What are the alternatives?

The alternatives to cash advance loans are limited, especially if you don’t
have a credit card or a family member who can lend you the money. Although
they can be expensive, if you use cash advance loans wisely for emergency
situations and special circumstances, you will find them a great way to get
hold of much needed cash at short notice without the usual credit checks and
long approval processes.

About The Author: Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/Loans/