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How To Get Cash Advances Even if You Have Bad Credit
A cash advance for bad credit can mean various types of loan options. When your FICO credit score is bad and traditional banks turn you away, a cash advance can help you get the funds you need when a fast influx of money is required. Read on to learn your bad credit personal loan options and choose which loan is right for you.
Cash Advance Loan Options
There are three primary cash advance loan options available:
- Cash advance loans – these involve a short-term loan that can be obtained online or in the store. This option is usually associated with a higher APR than a traditional loan with a good credit history.
- Credit card cash advance – this option is available for individuals with an existing credit card. For a credit card cash advance, the borrower will have to pay a certain percentage or flat fee as the cash advance fee. Just like in the case of a cash advance loan, the fees and rates of a credit card cash advance are often high too.
- Employer cash advance – not all employers offer cash advances to their employees and keep in mind that they are not obligated to do so. Unlike like the other types of cash advances, an employer cash advance is not a loan. The money you get is yours, and it's taken from your paycheck.
What is a cash advance loan?
A cash advance is a form of short-term loan that provides quick and easy relief to your financial crisis. This service is usually offered by online lenders, banks, and non-traditional lenders.
Also, credit card issuers provide cash advances to their existing customers. Although this loan option is known to have quick funding and a high approval rate, the fact that you can get a cash advance with poor credit is a significant perk that draws many borrowers.
How do I get a cash advance loan online?
If you're applying for a cash advance online, the process involved is straightforward:
- Find a lender that offers the best interest rates and payment plan
- Get the necessary documents and information that the lender requires
- Submit your application from the comfort of your home or office
You'll get a response on the status of your application within a few minutes or hours from the lender. If your application is approved, you may be able to get the money on the same day or the next business day depending on the policy of your lender.
It's worthwhile noting that some loan companies do not allow borrowers to apply online, so you may have to visit their offices to receive your cash advance.
What are the requirements for a cash advance?
A cash advance loan is available for everybody that is above the age of 18
Active members of the Military cannot apply for cash advance or payday loans
You will need proof of income. You can show a paystub or Supplemental Security Income
You will need a government-issued I.D.
You will need to verify that you have an open checking bank account
Requirements for New Customers.
When should you use cash advances?
- Many people who move from one location to another need a loan to cover their moving expenses
- Someone who needs financial assistance to take care of some medical expenses
- An individual who needs a rental vehicle for transportation after their car is involved in an accident
- A parent who needs money to pay for an unexpected school expense
- A family that can't afford a high utility bill to avoid shut-off
Case Study: Angela's Rent Problem
Angela's roommate unexpectedly moved out right before the rent was due. She knows she doesn't have the money to cover all the $1,200 rent for another two weeks. Her landlord charges 10% of the rent for a late fee after 10 days.
Her credit isn't great, and she doesn't have any friends or family to lend her money. Because a cash advance loan can be approved on the same day, Angela borrows $200 to cover her rent and pays it on time to avoid the $120 late fee.
Angela adjusts her budget before her next paycheck and pays off her loan in two weeks for $236, which includes the interest and the loan principal.
Credit Card Cash Advance
What is a credit card cash advance?
If you have a credit card, you can use it to borrow money. Credit card companies offer this type of loan at a higher interest rate than when you use your card for a purchase. There are usually fees associated with credit card advances as well.
How do credit card cash advances work?
You can use your credit card to withdraw money if you go to an ATM or your nearest bank location.
The money you use from a credit card cash advance will show up on your bill the same way as a purchase would. The difference between this type of advance and using your debit card is that the cash you received is a loan from your credit card company. Remember that you're responsible for paying it back.
Keep in mind that the longer you take to pay off your credit card cash advance, you'll pay more interest on that loan. Most credit card companies have no grace period, and the interest starts accumulating the day you withdraw the cash. You'll be charged a higher interest rate than if you made a purchase with your credit card.
How much are these credit card cash advance fees?
Most credit card companies charge a fee up to five percent of the amount you get from a credit card cash advance. If you borrow $100, then you'll pay up to $5. That might not seem like much, but if you get in the habit of taking advances from your credit card every month, that $100 costs an extra $72 every year in fees alone.
Most credit card companies charge above 20% annual percentage rate. You are also responsible for paying the interest and the fees.
When should you use a credit card cash advance?
When you need to pay for an expense that does not allow you to use your credit card, a mechanic will only take cash to fix your car, for example, credit card cash advances can be helpful.
The downside is that cash advances from your credit card have a limit. If your card already has a balance on it, you may only have a small amount of cash you can get.
Employer Cash Advance
What is an employer cash advance?
This is a less common cash advance, but if your employer offers this option, it's worth exploring. The best part about the money you receive from an employer cash advance is that it's not a loan. That money is yours, and it comes out of your paycheck.
How do employer cash advances work?
If you don't know if your employer offers an employer cash advance, you should ask your co-workers or your Human Resource Manager. Companies have no obligation to provide advances to their employees. If you ask your boss, it could create an uncomfortable situation.
If your employer does offer cash advances, you'll need to follow the proper procedure set in place. Some companies have strict and formal guidelines, while others are less formal. If it's required to sign paperwork, be sure to read the details when the advance will be deducted from your paycheck. You don't want to be put into a situation where you can't pay your bills after you get your advance.
The pros and cons of an employer cash advance?
Getting a cash advance from an employer is useful because the money is interest-free. It's the best cash advance option because it's free! However, if where you work doesn't offer advances, or if your financial emergency isn't regarded as dire enough, you can't get the money you need.
Getting a Cash Advance with Bad Credit
Your credit score can prevent you from getting any form of financial assistance, especially from a traditional financial institution. Therefore, it's usually difficult for anyone to obtain loans for bad credit in most situations.
There is good news because you can get a cash advance with bad credit. Lots of online lenders are ready to provide loans to you within a short period without digging into your credit score ratings. In fact, as long as your income shows that you can afford to repay your loan on time, the credit bureaus may not even know anything about the cash advance.
Benefits of Getting a Cash Advance with Bad Credit
If you are still pondering on whether you should get a cash advance with poor credit, there are a few good reasons that can be considered. Anyone with bad credit already has limited options when it comes to getting financial assistance as many financial institutions, friends, and even family will be unwilling to help out. However, you can rely on cash advance loans.
To get a cash advance with bad credit, the principal set of information that is required includes your name, residential address, phone number, proof of income, employment history, and a government-issued ID.
Apart from being an easy way to borrow funds, it does not take time before the money you need is disbursed. After you've submitted your application and provided your checking account, the loan company will start working on it immediately, and your application can be approved as soon as possible.
Once approved, you can get your funds in just a few hours; in fact, some loan companies will send the money to you within 15 minutes of accepting your application. It should be noted that the same account through which you get the funds will be used for making the loan payments.
Another benefit of a cash advance with bad credit is that the loan company will not make any inquiries about why you need the funds. Similarly, getting a loan through this method does not involve any collateral. One last benefit for people looking for an advance with bad credit is that lenders do not do a traditional credit check. Cash advance loans do not hurt your credit because there is no reporting to the major credit bureaus.
Best Options for Getting a Cash Advance with Poor Credit
Having considered the benefits of a credit advance, you should take note of the best options that you can count on when you need a cash advance with poor credit. Since you need an advance as a result of a financial emergency, it's better for you to avoid traditional financial institutions. This is because these institutions will require a few days before approving your application and disbursing the funds; therefore, the funds may not be useful for your needs again.
In respect to emergency needs, you should instead borrow funds from online lenders. In addition to providing cash easily and quickly, these online lenders offer loans with interest rates that are lower than the traditional lenders. Nevertheless, do not rush into getting a loan from any online lenders; take your time to look at the offers. There are lots of lenders to see, consider the ones that provide the best value.
Pitfalls to Avoid When Getting Cash Advance Loan
- Do not get a loan amount you cannot afford to pay
Taking loans that you cannot repay on time will only put you in a worse financial problem that could lead to additional charges. Apart from paying more on interest charges, you may also have to pay extra fees for extending your installment loans terms. Therefore, if you want to get a cash advance with poor credit, carefully consider your income to determine if the repayment is possible for you or not.
- Avoid taking loans with bad terms
Pay attention to the terms and fees of the offer provided by a loan company; do not just skim the offer. If you note that the term is too costly with additional fees, it is recommended that you avoid such a loan offer. The truth is that the best cash advance lenders understand your situation; however, some would rather capitalize on the situation by charging you too much. Notwithstanding, if you can search a little longer, you will undoubtedly get a loan with good terms.
Are Cash Advance Loans Available in My State?
Now that you know that you can get a cash advance loan with bad credit or no credit, consider CASH 1 if you live in Arizona or Nevada.
You can use your car title for a cash advance in Phoenix, AZ.
Get a cash advance in Las Vegas, NV by using your income or vehicle as collateral.
Apply today and get the funds you need on time. If you follow this guide thoroughly, you can enjoy the various benefits of a cash advance without falling into any more financial stress.
Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.
With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.
When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.