Making the Most of Cash Advances

June 23, 2012 by  Filed under: Loans 

There has been a lot of discussion as to the pros and cons of the cash advance industry, but let us try to look at the issue objectively.

There is no arguing the fact that cash advances can be both a curse and a blessing. Essentially, it all depends on who is taking the loan and why.

There is a level of discipline required here. The fact that you have access to this facility does not mean you must take advantage of it. A simple rule that can be followed to avoid the financial complications that can arise from this facility is this: Never go for a cash advance for something you can do without.

The major problem people have with cash advances is abuse. Going for cash advances just because it is there is an abuse of the facility and would surely result in some financial stress down the line.

Never mistake cash advances for free money. It is not free money. You are simply getting advance access to your future income. In addition to this, you would also be paying some interest on this.

From experience, most people do not manage cash advances as well as they manage their salaries. It is funny that they actually fail to realize that it is their salary coming to them earlier and if I may add, with some charges. You would expect that they would would at least manage these funds as well as they do their salaries.

It is that mentality of “free money” that fuels this attitude. The solution to this has been mentioned earlier in this article. Go for cash advances when the need is critical and there is no other cheaper option.

There are times when not paying a bill, or meeting a need might cost you something. Ask yourself one important question before opting for cash advance. Which would be more, the interest I pay on my cash advance or the penalty I incur for the late payment of the bill or whatever need came up.

With the right amount of restraint and financial discipline, you can use cash advances very effectively, but before you apply for any kind of loan online, it is advisable to be acquainted with a few things that might help you find reasonable deals and stay out of trouble. We shall examine some of the essential things that you ought to keep in mind when making a loan application.

1)Credibility of Lender

It is important for you as a small time borrower to be aware of the reputation of the lender. You need to consider what sort of lender you intend to deal with and whether their services are reasonable and affordable. You should know about their business practices and policies towards borrowers. These details are crucial if you want to get quality service and the best deals. You can determine the credibility of lenders of quick loans online from the comments or views posted on their website by current borrowers.

2)Terms of Borrowing

Sometimes, borrowers also overlook the terms of borrowing that have been put forward by the lender. It is a fact that not all small online lenders offer favourable terms of engagements to individuals who want to apply for payday loans. While some will match good customer service with better lending rates, some will offer poor services and unfavourable terms to prospective borrowers.

3) Loan Amount

Finally, you should also consider the amount of loan that you want to take from lenders. Besides, you should also determine how much the lender can offer you. Generally, online lenders offer anything between $ 500-2500 but the borrowing limits vary from one lender to the other. The amount that you borrow will also determine the interest that you will pay for the approved loans online. Basically, the amount you intend to borrow should cater for you needs to avoid under borrowing or over borrowing funds.

I am a widely published financial writer with experience in financial topics ranging from macro-economics to payday loans online. I have also worked with a number of financial institutions and small lenders creating content for their websites. Most recently I have worked with online lender Paydayloaner.

Article Source:
http://EzineArticles.com/?expert=Richard_H_Baynes

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