Three Situations Where Cash Advance Loans Make Sense
Cash advance loans are not for everyone. Some people get stuck in a cycle where they take out the money and then find themselves unable to pay it back as promised. This will lead to huge fees and APRs. At the same time, there are reasons a cash advance loan is the best solution to your problem. Here are three examples where cash advance loans make sense.
Auto Repairs Cannot Wait
If your car breaks down and you cannot afford the repairs that same day, it can be crippling. You need the car to get to work, but you don’t get paid for another week or two, so you cannot pay for the repairs. If you don’t work, you won’t earn any income to pay other bills like your rent or mortgage. It is highly unlikely you’ll find a mechanic who agrees to do the work and then wait for a payment. A bank loan can take days or weeks to process, and you don’t have that time to spare.
In this case, borrowing the amount you need to have your car repaired and back in service is a smart idea. Once your payday arrives, repay the loan in its entirety and you’re all set.
Home Needs Urgent Attention
One of the most common issues that can drive a family out of their home is a septic issue. If your septic is having problems, you cannot use toilets, wash dishes, do laundry, or even take showers. You’re left with the options of showering with a hose outside, going to a hotel, or begging friends or family members to let you use their bathroom and washing machine. Other critical issues are mold found in the walls or ceilings or a well that stops producing water.
In each case, you need the repairs handled immediately if you are going to remain in your home. A bank refinance or home equity loan can take a month to process, and that’s not a month you can afford to wait. A cash advance loan can cover the deposits you need to have the repair work started. Once your bank loan clears, you can then pay back that cash advance loan.
Even with health insurance, medical bills can quickly pile up. That trip to the emergency room was definitely necessary, but many hospitals want their payments immediately. They’re not willing to wait until your next paycheck to arrive. A cash advance loan can help bridge the gap between the time you went to the ER for urgent medical care and the days or weeks before you’ll get your paycheck.
The one thing to remember with cash advance loans is that you do have to pay them back within the set time frame. If your loan requires repayment in two weeks, make sure your paycheck will deposit to your account in time for the loan to be repaid in full. You’ll avoid excessive interest and fees when you use a cash advance wisely.