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 than you normally would. A cash advance loan helps customers get cash from their paycheck sooner rather than later so they can have the finances they need today.
Cash Advance Definition
There are many kinds of loans. Cash advances are another way of referring 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.
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 they are 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. You can go to a store location or get a payday loan online.
Cash Advance on Income Tax Refund
Another useful cash advance option that some lenders provide is a tax refund advance.
Taxpayers don't generally receive their tax refund until after their taxes are filed and after the IRS is finished processing those filed taxes.
Instead of waiting all that time for your tax refund money, take out a tax refund advance and enjoy those funds sooner.
Credit Card Cash Advance
The 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 may 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 reason is to get your money sooner rather than later.
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.
At Check City, you can take out a cash advance to get your paycheck or tax refund sooner.
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
- To avoid high overdraft fees
Cash advances are an important and useful tool to help control your own finances. They help you finance on your own schedule and get your funds in time to stick to your financial plans.
How to Get a Cash Advance at Check City
How to Get a Cash Advance Online
- Fill out a cash advance application.
- Check City will review the application.
- If approved, you'll set up direct deposit to receive your funds and pay off the loan amount on the due date.
Your cash advance funds will then be directly deposited into your account or given in cash within 24 hours.
How to Get a Cash Advance Near You
- Walk into any Check City Location and fill out an application.
- If approved, write a personal check† for the loan amount you need (plus our standard fee). Check City will hold the check until your next payday (or another date you specify) and then cash the check to repay the loan.
- Walk away with your cash loan upon approval.
Cash Advance Requirements
Cash advance loans should be used for short-term financial needs only, not as a long-term financial solution. If you are experiencing credit difficulties, we encourage you to seek credit counseling. Although we strive to assist every applicant, not all loan applications will be approved.
- Basic Contact Information
- Government ID
- Social Security Number
- Check or Bank Statement
- Proof of Income
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.