If you need a loan and are thinking about getting a cash advance, you should consider that along with the money often comes a high interest rate. The interest rate and potential penalties could mean you end up paying far more than you originally planned when you received the loan.
The high interest rates may make for steep monthly payments that could lead to future financial distress.
So, if you do decide on a cash advance loan, seek out the best interest rate you can find. Instead, you may decide to find another way of securing the money.
Another downside to cash advance loans are the fees that are imposed when you miss a payment. You may be required to pay back more than you were anticipating, including the same amount in interest a second time. .
With even one missed payment your payment could increase by as much as 50 percent. So, the actual cost of a cash advance loan could be a lot more than you bargained for.
Cash advance loans also typically have strict repayment structures. They even compare unfavorably to credit cards. For example, you can miss a credit card payment and still pay back less than what you would if you missed a payment with a cash advance loan. It's a decision that will affect you in the long term so, it pays to think hard about it.
If you find yourself in need of a lot of cash, you may want to talk to a loan company first. Their repayment structure will likely be less than a cash advance company and you will repay your loan sooner.
So, if you're in need of cash you may want to consider other options discussed in lieu of a cash advance loan. There are other types of loans available that offer better terms and less harsh penalties.
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