Pros and Cons of Instant Cash Advances

LOS ANGELES, December 28, 2021 (Newswire.com) - iQuanti: Even with a steady paycheck, you may still have months where the money runs out before payday. In these situations, a short-term loan like an instant cash advance can help bridge the gap until more money comes in. And with lenient requirements and fast funding, a cash advance is worth consideration, even for those with poor credit. So if you find yourself in this situation, here are the pros and cons of instant cash advances to consider before you apply.

What is an instant cash advance?

Instant cash advances are short-term loan options that are available to those with a steady source of income. These loans are typically used to help cover expenses before your upcoming payday. Then, you'll repay the loan within two to four weeks, depending on when your next paycheck comes in. 

Pros of instant cash advances

There are several benefits of instant cash advances, including:

• Immediate approval decision: As the name implies, the lending decision on an instant cash advance is very quick. That means you may know if you're approved within a few minutes after you submit the application, instead of having to wait around for days or even weeks.
• Fast funding: Once approved, borrowers can anticipate seeing money in their bank account within 24 hours but sometimes within the same day. And some instant cash advance lenders will even transfer funds to a debit card for immediate use.
• Lenient credit score requirements: Instant cash advances tend to have lenient credit score requirements, so you may not need great credit to get approved. Many lenders will review factors in addition to your credit score when deciding whether to approve you, like your employment history and income. This means that you can still get approved for an instant cash advance with a poor of fair credit score. 
• No collateral needed: Since cash advances are unsecured, lenders won't require you to provide collateral as they would with a title loan or pawn shop loan. This means you won't run the risk of a lender repossessing any physical items if the loan goes unpaid.
• No restrictions on how you spend the funds: Unlike an auto loan or mortgage, an instant cash advance doesn't restrict how you spend the money. That means you're free to use it for whatever comes up, like covering an emergency car repair or paying bills that are due before your payday.

Cons of instant cash advances

Keep in mind that instant cash advances also come with some downsides, like:

• High cost if not repaid on time: Instant cash advances can become expensive if you don't repay the amount borrowed on the agreed-upon schedule. Borrowers may see late payment fees and interest tacked on in the days following the loan's due date if it's not repaid. That's why it can be a good idea to have a plan in place to repay the loan, often deciding to use your next paycheck to settle the debt instead of looking for money elsewhere.
• Lump-sum repayment: Some kinds of loans, like installment loans, enable you to repay the loan for a small amount each month. But instant cash advances typically require you to repay the whole loan amount at once. That may be difficult for some borrowers who rely on having their whole paycheck available to spend. For this reason, it's important to have a solid repayment plan in place before signing for an instant cash advance.

The bottom line

If you're working to improve your credit score but need cash to cover expenses before an upcoming paycheck, an instant cash advance may be worth a look. The benefits of an easy application process, limited requirements, and fast funding can make these loans a good solution for those with poor credit who need money now. Plus, by making a plan to repay the cash advance on time and in full, you can avoid the downside of potentially high interest rates and fees.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.