Most people turn to cash advances when they are in a financial pinch because they are quick and easy to apply. Not to mention that some companies even have discounts for cash advances or other promos to entice you to get one. But there’s one caveat to all of this.
Cash advances can be very expensive and are one of the most common reasons people go into debt. They carry many limitations and costs, so you should think before getting one. That said, if you’re looking for an alternative, you have several options on your table.
These are situational, however, so pick one suitable for you. Here are some of them:
A personal loan is the most common money advance alternative. Even though it’s more tedious regarding paperwork and time, it’s cheaper to get than cash advance loans. Not only that, you can reduce the paperwork and time if you opt for CreditNinja.com easy online loans. All you need is an internet connection and the proper documentation, and you’re ready to go. It’s fast and easy; you can get the money in just a few weeks.
While the interest rates can be a little hefty, it’s nothing compared to cash advance loans. Also, you can opt for a secured loan if you’re willing to pawn one of your valuables as collateral for the loan to have lower interest rates.
0% Credit Cards
If your financial emergency can last for quite some time, maybe you need an alternative that can be a good source of money for a long time. Enter 0% APR credit cards. With this type of credit card, you can pay for your groceries, bills, etc., without paying interest upfront.
Of course, you still owe the money, but you have a period where you can pay the bill in full without incurring interest.
If you’re a corporate employee currently enrolled in a 401k loan, you may look into this first instead of going directly to cash advances. Most 401k loan administrators allow members to get a loan against their accounts. The interest fees and rates depend on the employer but are generally competitive compared to most loan products you can see in the market.
Usually, the loan limit can be up to 50% of your account or up to $50,000. The repayment is five years or more. There are usually no credit checks, and the loan payment is automatically deducted from your paycheck.
The rates are low because you’re borrowing from yourself, and the interest usually goes back to your account. However, it would help if you remembered that while you still owe money from your 401k, they do not earn any investment returns.
Most companies offer inexpensive salary advances to help their employees save money by opting out of expensive alternatives like cash advances and payday loans. Fees can be as low as 8%; however, the interest rate can be too high.
Usually, they range from 10% to 165%, which is honestly just on the dot of being borderline predatory territory.
If you have some valuables in your possession, then there is something that you can do with them, and that’s pawn loans. If you don’t know how they work, you have to bring in a valuable piece of property, have it appraised by the shop, and then use it as collateral for a small-dollar loan.
They will then give you a set amount based on the property’s value and then set the repayment terms. They can legally put your property up for sale if you can’t pay back the loan. The only downside of this one is that you can lose your valuables.
Title loans, or more specifically, car title loans, are often considered to be the last resort when it comes to finding an alternative for a cash advance. It’s usually because the interest rate can be astronomical, going from 300% to 500%.
However, they are easy to get, which is why they’re still popular. If you have nothing else but your car title, maybe it’s your way out of your financial pinch.
Cash advances are not cheap, which is probably why you’re looking for alternatives. Remember that these alternatives are situational, so make sure to pick the most suitable for your situation. They have their pros and cons, so make sure to research them first. Good luck.