What is a cash advance and how do they work? Learn all the basics of a cash advance and how to use a cash advance in today’s article.
Explore this Guide:
- What is a Cash Advance?
- Cash Advance Definition
- How Does a Cash Advance Work?
- Types of Cash Advances
- Reasons to Get a Cash Advance
- Cash Advance Near Me
- Cash Advance Alternatives
What is a Cash Advance?
A cash advance is a type of small loan designed to help borrowers get the cash they need as quickly and easily as possible.
In finance, getting an advance on something is usually a way to get something sooner rather than later. A cash advance loan helps customers get the cash they need sooner rather than later so they can have the finances they need today.
Cash Advance Definition
Cash advances are similar to payday loans. Instead of waiting for a paycheck or a payment to come through, a cash advance helps you get those funds sooner.
How Does a Cash Advance Work?
Since cash advances are small, short-term loans, they are much easier and quicker to take out than larger loans with longer repayment plans.
Getting a cash advance is simple and easy to do. The person taking out the cash advance gives a post-dated check to the cash advance lender in the amount they would like to borrow. On their next payday, the borrower pays off the loan amount and the lender’s fee.
Taking out a cash advance loan at Check City is especially easy to do. Borrowers just have to follow these 4 steps and meet 3 simple qualifications listed below:
Step 1: Visit a Check City location or go to CheckCity.com.
Step 2: Whether you go online or to a store location, you’ll need to fill out a cash advance application and submit it.
Step 3: Check City will review the application and put it through a screening process.
Step 4: Once the application is accepted, the cash advance funds will be deposited directly to the checking account you provided or given to you in cash at the store.
Since cash advances are a simpler loan type, they also have fewer qualifications than larger loans. Customers only need to meet 3 qualifications to get a cash advance at Check City.
- A steady source of income
- A state or federal ID
- A checking account
Types of Cash Advances
There are a few different types of cash advance options that borrowers who need money can use.
Payday Cash Advance
One type of cash advance is a payday loan. These are small, short-term loans that are borrowed only for the time until a borrower’s next payday. This is where the term “payday loan” comes in.
These types of loans are designed to get a person to their next payday and to be paid off with their next paycheck. They often have loan amounts that are only a few hundred dollars and loan terms that last only a matter of weeks.
Cash Advance on Income Tax Refund
Another useful cash advance option that some lenders provide are advances on your tax refund.
Taxpayers don’t receive their tax refund until after their taxes are all filed and after the IRS is finished processing your filed taxes each year. It can be hard to wait all that time for the IRS to finish processing your filed taxes before you can get that helpful tax refund.
Instead of waiting all that time for your tax refund, take out a tax refund advance on income tax refunds and get your money sooner.
Credit Card Cash Advance
A third type of cash advance is an advance on your credit card. If your credit card provider allows credit card cash advances, then you can take out cash at a bank or ATM with your credit card.
Fees and restrictions might apply for each cash advance transaction taken out using a credit card.
Reasons to Get a Cash Advance
There are many reasons to get a cash advance. The primary reasons are because you need to get money sooner instead of later.
You can take out a cash advance on your next paycheck or your upcoming tax refund to get those funds in hand sooner.
Many borrowers take out cash advances because they need those funds sooner rather than later in order to pay bills or make time-sensitive purchases.
Here are a few specific examples of when someone might want to take out a cash advance.
- So they aren’t late paying rent
- So they aren’t late paying utility bills
- So they aren’t late paying the phone bill
- To take advantage of time sensitive sales
- To avoid needing to take money out of a savings account or emergency fund
- To get funds into your hands sooner for everyday expenses like groceries
- Avoid high overdraft fees
Cash advances are an important and useful tool in being able to completely control your own finances. They help you finance on your own schedule and get your funds in time to stick to your financial plans.
Cash Advance Near Me
There are two ways to find a cash advance near me—online or at a Check City location.
Lucky for cash advance borrowers, Check City locations are always in a convenient, nearby location in the neighborhoods they operate in.
Check City’s online cash advances are also incredibly convenient to use and can be applied for from the comfort of your own home.
Cash Advance Alternatives
If you are looking for an alternative to cash advances, you could try taking out a personal loan. Personal loans are another great option when you are tight on finances and need some help.
Personal loans are a flexible loan type that can be taken out for any personal reason. For example, unlike a business loan, personal loans don’t have to be used for a set, official purpose.
This makes personal loans a great additional option for borrowers who need quick personal funds.
Peer to Peer Borrowing
You could also borrow money from a friend or family member. This is an especially helpful option when you only need to borrow a little and have someone in your life that you trust as a lender.
But borrowing money from people we know can also get complicated, which is why options like personal loans and cash advances might still be your best option.
Cash advances are an important small loan solution that many people need and use. When used responsibly, a cash advance can be the perfect, short-term solution for a short-term financial problem.