Although the hassle-free application process, the relaxed background check, the instant approval and speedy cash access make cash advances an attractive option when you are short on money, you should be aware that this type of short-term loan is designed to address emergencies and cash shortfalls right before a pay check arrives. If you are thinking about applying for a cash advance, consider your motivations first to avoid running into debt that keeps building up, as well as some other common pitfalls that people tend to fall for.
1. Not researching the cash advance lender
Clicking on the first shiny cash advance ad with suspiciously favourable terms and promises that sound just a bit too generous is not the right way to go when picking a lender. You need to devote some time to careful research in order to find a reputable lender, such as www.advanceloan.net/cash-advance/online-cash-advance.php – online cash advances, that has a good track history of satisfied customers, transparent terms and conditions as well as customer service representatives that are available to discuss your situation.
2. Not evaluating your financial situation
Before you even apply for a cash advance, you should have a clear idea of how long it would realistically take you to repay the loan. Keep in mind that instant cash advances tend to be accompanied by high interest rates and no grace periods, so don’t take out one if you are going to end up in a worse situation than you are in now and if you have other available sources to finance your emergency or project.
3. Applying for multiple cash advances at once
Many people do this since cash advances are for relatively small amounts and don’t require detailed background checks. If a couple of hundred dollars are not enough to get you through your financially difficult moment, you should think about exploring other loan options instead of running multiple high-interest debts. Remember that cash advances have among the highest interest rates possible.
4. Not admitting you are in trouble
If somehow you end up in a situation, in which you simply cannot pay back the cash advance loan, don’t ignore the situation in hopes that it will resolve itself automatically. It never does and admitting you are in trouble early on will save you much headache in the future. There are services and organizations that can help you or you can speak to your lender for any alternative repayment plans they might be able to offer.
5. Not getting a cash advance for the right reasons
So you need a new pair of shoes or feel like taking off to a weekend’s vacation, but can’t really afford it right now? This is not an emergency, even though it may temporarily seem so to you, especially if you are emotionally affected at the time. Reserve taking out a cash advance for truly urgent situations and keep a clear head about financing your whims as you will most surely come to regret your decision in the near future.