Can you get a cash advance with bad credit? In short, yes. Cash advances get you the cash you need fast but you need to know how attain one with low credit.
Obtaining a cash advance is relatively easy, no matter who you are or what your history. But the tricky part is finding a cash advance without bad terms.
Can you get a cash advance with bad credit? In short, yes. Cash advances get you the cash you need fast, but you need to know how to attain one with low credit.
What Are My Options?
There are a few main options for those asking how to get a cash advance with bad credit. But traditional banks don’t usually loan to people with bad credit. So, where do you turn?
Cash advances are there for when you need fast money. Cash advance loans, for example, are short-term loans that you can apply for online or in-store. These types of loans almost always have higher APRs, especially if you have bad credit.
But if you’re confident you can pay them back in the required time, they can be your best option when you’re in a bind.
Credit card advances are available for people who own a credit card. The credit card company issues the cash advance, and the borrower has to pay back a certain percentage or flat fee. This flat fee is called a cash advance fee.
As with cash advance loans, credit card cash advances also have high APRs.
Some employers also provide their employees with financing options. For someone with bad credit,m this is the best way to protect yourself from high APRs because employer cash advances don’t have APRs.
What Is a Cash Advance Loan?
A cash advance loan provides cash quick and easy. Because of the high-interest rates and risks involved, banks are less willing to give cash advances to people with bad credit. But non-traditional lenders frequently deal with cash advances and are more apt to cater to bad credit borrowers.
Cash Advance Requirements
The requirements for a cash advance are least than those of a traditional loan. The reason for fewer requirements is that non-traditional lenders give cash advances. Non-traditional lenders aren’t bound by the same laws and restrictions traditional banks have to follow. The following is a list of requirements and restrictions on cash advance loans:
- You must be 18 or older to apply for a cash advance loan.
- If you are an active member of the military, you are not eligible for cash advance loans or payday loans.
- Required proof of income by providing a paystub or Supplemental Security Income proof
- Verified open checking account
- A valid, government-issued ID
Reasons to Apply for a Cash Advance
People need cash advance loans for many reasons. To service people’s varying cash needs, there is usually a cash loan company for everyone. Because this cash loan company can provide cash now, and they don’t take long to approve, they are essential for sudden expenses such as an unexpected move or medical bill.
Cash advances can also be used for someone who needs transportation after an accident.
Credit Card Cash Advance
Credit card cash advance is similar to using your credit card like a debit card. But since you’re borrowing money, you incur an interest rate. Credit card cash advances have higher APRs than the interest rates on your regular purchases.
These cash advances also have fees that everyday credit card purchases do not.
If you don’t have an income to pay back a credit card cash advance, it’s best to avoid them. The longer you take to pay off a credit card cash advance, the more the interest accumulates.
Credit card companies can charge up to 5% for fees. That may not seem like much, but remember, that fee is added to the interest. Plus, if you get into the habit of taking credit card cash advances, you add multiple fees on top of interest.
Unless you are in a position where you don’t have cash, but you know you’ll have the finances to pay off the cash advance soon, steer clear from credit card cash advances.
Another position you might consider a credit card cash advance for is paying cash for a car. You might have funds spread all over your accounts when you have to pay cash upfront.
Taking a credit card cash advance can help you get the cash from one location while you can still pay it back immediately.
Employer Cash Advance
Employer cash advances are less common than the other two cash advances on this list, but they are worth it if you have the option. The main benefit of employer cash advances is that you’re not taking out a loan. It’s essentially financing with 0% interest.
Employer cash advances often run through the company Human Resources Manager.
Benefits of Getting a Cash Advance With Bad Credit
The primary benefit of cash advance loans is their availability for people with bad credit. Someone with bad credit simply doesn’t have the same options as someone with a high credit score. In many cases, you have to settle for higher interest rates than average.
High-interest rates aren’t only for people with bad credit. It’s also the case for people with little to no credit history. Traditional banks only loan money to low-risk individuals with proven credit histories. But that doesn’t make cash advance loans a bad thing.
The good thing is, like anything else in life, it’s never too late to turn it around. Taking out a cash advance loan that you know you can pay off can do wonders for your credit. The key to using a cash advance loan as a credit builder is managing your finances wisely.
The other way cash advance loans can be useful is through their easy approval process. You might not always be able to wait around for traditional loans to clear. Sometimes you need cash right away. Cash advance loans provide that resource.
Things to Avoid When You Take Out a Cash Advance Loan
The simplest thing to avoid when considering a cash advance loan is staying within your budget. “Don’t take more than you can afford” is an axiom we all should observe.
Taking more than you can afford is a slippery slope that leads to more fees, defaulting on loans, and worse credit than you had before. Avoid this pitfall like the plague.
The other glaring no-no when it comes to cash advance loans, is agreeing to unfair loan terms. Some lenders hide fees and try to get away with charging you higher interest rates than others. Because some lenders offer usurious rates, you must seek multiple sources.
Cash Advance With Bad Credit Is Far From Impossible
Having bad credit can feel like you have a weight tied around your neck. But getting a cash advance loan can serve as the light at the end of the tunnel. As long as you avoid usurious loans and stay within your means, you’ll be well on your way to better credit and a financially stable life!
Cash advance loans aren’t the only way to financial freedom. KuaPay can show you the way with its informative blogs on finance and business. Read more to find out how to become the best economic version of yourself!