There is no doubt in the fact that cash advances have made our lives easier today. They are provided by most of the credit card issuers nowadays. This allows the credit card holders to withdraw cash either from an ATM or directly from a bank or any financial agency up to a certain limit. Cash advances can be swiftly processed and offer a significantly higher interest rate.
How are cash advances a bane?
Cash advances are a bane because there are some places where it is best not to make use of them. Here are a few things where it is best not to use a cash advance or a payday loan.
- While purchasing automobiles
One should not use a cash advance or a payday loan for purchasing automobiles like cars because automobiles are quite expensive, so it would take a very long time to repay the loan. The best thing one can do is to approach any financial institution which offers special loans for purchasing cars and other automobiles. Taking these loans is the nonpareil choice for the customer in such a case.
- While shopping for routinely products
Who does not go for shopping at least once every week? It provides rehabilitation and is often considered as an outing as people get some time off their daily hectic schedules. Using cash advances for shopping may seem like something quite tempting, especially when one is in dearth of funds. But, there are various store cards that earn you credits and points each time you make an in-store purchase. So, obviously using store cards over the cash advances is a better and a more economical choice, unless some credit rating tempts you to use your cash advance.
- While renovating a home or buying furniture
While buying new furniture for your home or remodeling your old home, it is definitely not a very good idea to use cash advances. It is mainly because selecting furniture for home and deciding its various parameters is something that takes a lot of time and discussions, and hence it is not an emergency that one would like to use a cash advance to cover the expenses until the next paycheck. Also, the prices of furniture are pretty dynamic. So, in case a loan is needed, it is better to get a longer personal loan from a bank.
There are various websites like iCASH that provide some good alternatives to using cash advances and payday loans.
How are cash advances a boon?
Now, this must be the question you may be pondering over. So, when do we actually use a cash advance or a payday loan? We would not dive so deep into it as of yet, but what you must know is that there are various factors such as time and the extent of urgency that decide when to use a cash advance and when to not use one. Sometimes, using a cash advance is quite helpful. One should use them in emergencies, where actual cash is needed, and one cannot do without it, i.e. if something is needed urgently or there is some serious medical condition.
“People need to be careful about how they manage their money. It makes a big difference!”