How to safely use Cash Advance

How to Safely Use a Cash Advance

Cash Advances can be helpful or detrimental to your budget. Do you have a large bill, or several smaller bills, that need to be paid this week, but you don’t get paid until next week? Maybe you splurged on groceries this week, thinking that your husband made the necessary credit card payment, only to realize that you were supposed to pay it. Now, since you bought groceries, you don’t have the money to make the credit card payment this week, but you’ll have it next week. You could apply for a cash advance instead of waiting until next week and racking up a late fee.

Cash advances can get you out of a tight pickle and can also help you avoid credit problems. Taking out a cash advance won’t affect your credit score as long as you pay it off, but making a late credit card or mortgage payment, or missing a payment, will in fact harm your credit score. In the long run, a low credit score can prevent you from buying a car or even a house. In the short scheme of things, missing a rent payment could get you evicted from your residence, which is obviously detrimental to you.

Cash advances can help you when you are in temporary financial need, but they also come with their risks. To avoid these risks, always borrow responsibility when it comes to cash advances. Think of your budget and figure out how much money you can afford to borrow. Don’t forget to account for the interest charges that come with the payday loan, also. Shop around for the lowest interest rate, and take your time making a decision. Don’t borrow more than you can afford to pay back with your next paycheck, or you could end up paying hundreds of dollars more than you ever intended.

If you borrow wisely, and stick to your budget as best as possible, a cash advance, or payday loan, shouldn’t get you into too much trouble. But also weigh the consequences. For instance, if missing a rent payment will get you evicted, perhaps it’s worth going into debt for a few months if you borrow more than you can technically afford. Figure out what’s important to you before you borrow, and be wise.