Online Cash Advance Loan: Rates? What is it, and what are the alternatives?
Cash advance loan rates are less costly than cash advance loans due to their high fees and short repayment terms.
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Flat tires happen. Your pet gets sick. You might need to get a root canal immediately. You might need to quickly borrow money in an emergency, such as an online cash advance loan.
A cash advance is a quick option, but it can have serious drawbacks that could end up costing you.
What’s a Cash Advance?
A payday loan, also known as a cash advance loan, is a short-term loan. Even if the repayment term is only a few weeks, you will still have to pay fees. You will have to repay the loan and all payments on your next payday.
In many ways, cash advances are different from personal loans:
Interest rates for personal loans are generally lower than those on cash advance loans. You might be able to get a personal loan from one of our partners’ lenders for as low as 2.9%+, while a cash advance loan rate could be as high as 400%.
The average payday loan is between $350 and $500. Personal loans allow you to borrow more. You could borrow $5,000 or $100,000, depending on who you are borrowing it from.
The repayment term for a cash advance loan
is You typically have 14 to 30 days to repay your loan. Depending on the lender, a personal loan will take you longer to repay — typically one to seven years.
Cash advances are often quick to fund. You could receive your money the next day with an internet cash advance or the same day if applied in person. Personal loans can take anywhere from one to seven days to be funded, depending on the lender.
Cash advances lenders don’t usually run credit checks. Approval is based on your employment history and pays stubs. Personal loan lenders will, however, typically check your credit to determine eligibility. You will need to have good or excellent credit to be eligible for a personal loan at a low-interest rate.
A personal loan is generally less expensive than a cash advance loan. You could pay more for a cash advance loan than what you borrowed.
Are you able to get a Cash Loan for Bad Credit?
Cash advance lenders don’t usually require credit checks. Your eligibility for a loan is determined by your employment history and pay stubs. Even if your credit is not perfect, you may still be eligible for a cash loan.
However, taking out a payday loan is not a wise decision. You could be further in debt due to the high fees charged by cash advance lenders.
Credit cards may offer cash advances — but be aware of the fees
A cash advance can be another option if you have a credit card. Cash advances can be limited to a certain percentage of your credit limit.
If you have a $10,000 credit card with a 30% cash advance limit, you can take out $3,000 cash.
Remember that cash advances on credit cards typically have a higher interest rate than regular purchases. A cash advance fee may also be required.
Let’s say you take out a $3,000 cash advance with a credit card that charges 24.99% for cash advances. A cash advance fee is also charged to the card, either $10 or 5% depending on how much you borrowed. The fee in this instance would be $150.
It would take you 59 years to repay the cash advance if you only made the minimum $60 payments each month. In interest charges, you’d have to pay $2121. You’d pay $5,271 in interest charges and the $150 fee for the cash advance.
You could receive funds as soon as the next day via a personal loan with better terms.
A personal loan is better than a cash advance online or via a credit card in almost all cases. Personal loans offer a more extended repayment period than traditional cash advances, with a shorter interest rate and a longer payoff.
Depending on who you are lending to, you could also get funds from a personal loan the same day.
To find the best personal loan for you, shop around. ACFA makes it easy to compare the prequalified rates of our partner lenders. The table below will take you two minutes. Some partners offer to fund the same day as approval.