Using a Cash Advance for Spontaneous Purchases


While a cash advance is usually thought of as a financial product used principally to help bridge periods of time where money is short and paychecks are a couple of weeks off, they do have decidedly more fun uses, as well. These financial products offer several alternatives and advantages over the revolving credit accounts which are typically used to make small but enjoyable purchases for one's self and are much more universally-available, especially right now, than are credit cards and other sources of quick consumer credit suitable for such uses.

Most spontaneous purchases tend to be for small amounts; little luxuries here and there that make life easier. A cash advance is generally available to most individuals which is sufficient to cover the costs of such purchases. These cash advances are even available online now, which makes them much easier to get and, with the convenience of direct deposits into one's bank account, there isn't even a need to cash a check, drive cash to the bank or any of the other hassles that used to accompany many of these financial products. The entire application process can be completed online.

While credit cards are usually the preferred means by which individuals make such purchases, there are distinct disadvantages compared to a cash advance that make revolving credit less than the most sensible choice. A credit card is a financial product that comes with a credit limit that's not based upon how much debt the consumer can realistically repay. It is based on the amount of debt the credit card issuer is betting the consumer can carry. This debt is usually quite large, subject to high interest rates and can be, essentially arbitrarily, adjusted up or down by the credit card company with little, and oftentimes no, recourse available to the consumer.

Presently, credit card companies are tightening up credit limits that may once have been rather large. Unlike a cash advance, there is no guaranteed that the money promised when one takes out a credit card will actually be available. Checking the fine print on these contracts generally reveals that the company is in complete control of the limit. Oftentimes, consumers charge their limit up so close to the maximum that it would take them years to pay off what really constitutes a small principal balance due to the interest charged and the miscellaneous fees and penalties for which these companies have become rather notorious.

A cash advance is based upon the individual's income and is not designed to be a debt that is carried for the long term. These credit products, on the contrary, are designed to be paid back very soon after they're taken out, usually within two weeks, corresponding to the most common pay period used by the accounting companies at most workplaces. This means the debt is only taken on for a short time and that, in reality, one need not pay interest on small purchases for months on end.

Unlike a credit card, a cash advance is very straightforward. The applicant's maximum advance is calculated by their income and a concrete limit on the amount they may advance is determined. The borrower may advance more or less than this limit, at their discretion. There is a fee added to the principal for financing. The loans usually may be rolled over for another period of financing if it's more convenient to the borrower though this varies depending upon state and local laws, which should be checked as a matter of course when shopping for these types of loans.

The paperwork for a cash advance can be filled out online and several vendors maintain sophisticated, secure sites from which these products are made available. One may apply for this type of lending anytime of the day or night but the actual time that any monies received will be available for withdrawal will depend upon the policies of the borrower's bank. In most cases, funds are available 24 hours after having been deposited by the lender. This deposit takes place completely online and requires nothing more than filling out the appropriate forms and being approved to receive the loan.

A cash advance can easily be taken only for the amount needed to purchase a desired item. Once the debt is paid back on the borrower's next payday, the debt is cleared and the account closed. Unlike a credit card, which may remain open for years and years with no appreciable progress toward paying off the principal, these loans are fast and designed to offer consumers a valuable product that doesn't turn into a persistent burden. The amount one may borrow versus their income also varies from state to state, so one should investigate ahead of time to get an idea of what they can borrow.