Cash Advance: A Quick Fix or Financial Trap?

Introduction

Life can be unpredictable and sometimes you need access to quick cash to cover emergency expenses. If you have ever found yourself short of cash before you hit your payday, you might have considered cash advance. While it can be a short-term solution, it is crucial to understand what is cash advance and how you can get one.

What is a Cash Advance?

Cash Advance is a type of small, short-term loan offered by banks or other financial institutions that allows you quick access to funds.

Credit card cash advances usually involve fees and a higher Annual Percentage Rate(APR) as compared to standard borrowings. When you go for cash advances through your credit card, you do not get any grace period to make a repayment.

Types of Credit Advance

Credit Card Advance

Cash Advance from Credit cards’ are the most popular way of getting a cash advance. You can directly withdraw cash from an ATM using your credit card.

Online Cash Advance Apps

You can get a cash advance from the online cash advance apps available on Play Store. Fintech apps or services that offer small cash advances based on income.

Personal Line of Credit

A more structured and often more affordable form of cash advance from banks and credit unions. These options are cheaper than the credit card cash advance.

Pros of Cash Advance

1. You can get fast access to money using a cash advance.

2. It is collateral-free.

3. It gives you a short and simple process to get the cash.

Cons of Cash Advance

1. You pay the higher cost of borrowing for a cash advance.

2. If not paid within the given time, it damages your score.

3. It offers a limited amount of money.

4. It can lead to an endless cycle of debt if taken too frequently.

When should you consider a Cash Advance in Canada?

Cash advance is a great funding option when,

• You do not find any reliable source of funding in emergency situations.

• You have a solid plan to repay the cash advance quickly.

• You have used all eligible sources of funding.

Better Alternatives for Canadians

• Low-interest Line of Credit

• Emergency Loan for Lenders

• Borrow from Family or Friends

• Get Advance Pay by Requesting Your Employer

• Payday Loans

Conclusion

Cash advances in Canada can be a helpful bridge for urgent financial needs. But you should also consider other aspects of a cash advance too for your long-term financial goals.

Lenditt is one of the finest emergency loan apps in Ontario, where you can get instant funding by following a simple and fast loan process. A fast cash app solution and 100 % paperless documentation ensure you get your quick cash loan easy and effortlessly.

Do connect Lenditt for more information.