If you are in need of fast money you may have limited options. Many will try to borrow from family and friends, and if you are comfortable and able to do this I recommend this as your first recourse. If however you are not comfortable borrowing from your personal acquaintances, it may be a viable option to seek cash advances. We will be discussing how these work in today’s discussion.
First, cash advances are for emergencies only. You should never use them to pay for major purchase or anything that is not absolutely necessary. I say this because the interest rate is extremely high on these types of loans. IF you don’t have a clear emergency, and a clear plan to repay the loan on time you should consider other options
Second, these loans have very high interest rates, sometimes over 100% interest. This means that if you were to borrow $1000 over the course of a year you would pay back $2,000! Remember what I said about having a clear plan to pay back the loan quickly? This is why you must do that. However even at 100% interest if you were to pay the loan back in one month you’d pay $120, still a huge amount to pay, but it may be less costly then the emergency you are attempting to avoid.
Third, not all lenders are equal, or honest. If you are looking to get cash advances online it is very important that you research the company you are planning to deal with ahead of time. Look them up on the better business bureau. Do they have a history of jacking up rates or not living up to their agreements? Do they have several unresolved issues? These should all be clear warning signs to you and you should not do business with companies like that. Also, not all interest rates are created equal either. Rates can range from as low as 25% all the way up to 150%, make sure to pick a company with rates you can afford.
So, when selecting lenders for cash advances there are three main factors to consider. First remember these are for emergencies and they are expensive. Second, they tend to have very high interest rates, so make sure you can pay back the loan in full quickly. Finally, no two lenders are alike, so make sure to research them thoroughly before you begin.