What are Online Cash Advances and How do They Work? Part 2

Who Needs a Cash Advance?

Online cash advances will be very helpful to you if you need cash urgently. However, bear in mind, as we explained earlier, that they usually have high interest rates. Go for them only when other cheaper options are exhausted or inaccessible.

More importantly, it'll pay off to examine all the charges involved with any cash advance plan you choose. Like that, you can adjust your budget to these charges without negatively impacting your convenience or (credit score).

How Can One Access a Cash Advance?

There are several ways to access it, such as;

#1. Online Loan Connection Service Providers

A loan connection service provider saves you the hassle of scouring the whole internet to find lenders that meet your financial needs and budget. AdvanceSOS is a leading loan connection service provider that accepts your loan application and matches it with top payday lenders ready to lend you a small-dollar payday loan, visit https://advancesos.com/payday-loans/texas/longview/. All for free! You can also access our installment loans, which are medium-term loans ranging from $1500 to $5,000, and pay in regular installments for up to a 24-month loan term.

#2. Credit Card Issuer’s Website

It’s easier to get a credit card cash advance online with the issuing bank if you have an account with them. All you have to do is log in to their mobile application or use their website to place a credit request and have it processed speedily.

What are the Charges Associated With Online Cash Advances

The associated charges differ between lenders, credit card companies, and banks. So, it’s imperative to read up your lender’s or credit company’s agreement to see how much you’d pay in fees and know whether it’s worth it.

Many lenders or credit card issuers are now more transparent than ever, thanks to protective federal and state laws. Most of the fees you’d pay for online cash advances, whether they’re payday loans or credit card cash advances, fall under the following categories;

#1. Cash Advance Charge

Some call it a service charge. It’s typically 5 percent of the credit card advance or $10, whichever is higher. Whereas, payday loan charges are usually $10 to $15 per $100, aside from the APR.

#2. Annual Percentage Rate (APR)

The APR for credit card advances differs from the interest on your purchases. Therefore, check out your cardholder agreement or contact your card issuer to be informed about your card’s APR.

#3. Bank or ATM Charges

These are the fees charged by your bank, ATM, or credit union, different from the credit card issuer’s fees. Think of them as transaction fees or processing fees, whichever is the case. Again, they’re not fixed, instead, they depend on the bank, ATM, or credit union.

Do Cash Advances Affect One’s Credit Score? If Yes, How?

Payday loans rarely affect your credit score. The reason is that they aren’t reported to the three main national credit reporting companies. But they can affect your credit score if;

You fail to repay your debt and your payday lender sells your payday debt to a debt collector–who then reports to a national credit reporting company; or

You lose a court case on your unpaid payday loans. Only these cases may put your credit score at risk.

Similarly, your credit card cash advance isn’t included in your credit history and doesn’t outrightly impact your score. However, your cash advance balance is added to your credit card debt–which impacts your credit score if you have a high credit utilization ratio (CUR). The CUR measures how much of your available credit you use. A high credit utilization ratio (above 40%) indicates credit risk and can negatively impact your credit score.

Any Parting Words for Anyone Seeking to Get Online Cash Advances?

Yes! While online cash advances can solve your emergency needs, it’s wise to not depend on them to cater to everyday needs. The reason is that the typical cash advance has a high APR that starts counting once you grab a loan. And where they are the only option, ensure to check out all the charges, terms, and conditions involved to confirm they align with your interests and budget.