No one ever knows when they may fall short on cash or an unexpected expense will occur. When you’re pursuing a traditional loan, having poor credit can make getting approved for one more difficult. There are a variety of reasons to consider getting a cash advance. You may need it to fund an essential expense or take care of an emergency. Here are some of the reasons to consider getting a cash advance for poor credit this summer:
1. Fund essential expenses
Sometimes you may not have enough to cover your essential expenses. In recent years, costs for expenses such as gas, rent, and food have risen. A cash advance can help you pay for all these costs.
Beyond your basic needs, you may have an unexpected issue that comes up. This could be an emergency medical examination or treatment you need or repairs for your home or vehicle. These and other circumstances are moments where it may be worth it to get a cash advance.
2. Less strict credit score requirements
Many cash advance lenders have less strict credit score requirements. They’ll consider additional factors when deciding whether to approve you like income, employment history, and current debts. This means borrowers with poor or fair credit can still get approved for a cash advance.
3. No collateral
Unlike secured loans, you don’t need to provide an asset as collateral to get a cash advance. This means that you don’t have to risk losing an item you own, like your house or car, if you can’t pay the loan back.
4. Simple repayment terms
While some larger loans must be repaid over a period of months, you can pay off a cash advance within a matter of weeks. The due date is normally two to four weeks after you receive the funds. Additionally, cash advances are much smaller than many other loans. You’ll typically receive a few hundred dollars, which may make these loans easier to pay back.
If, for any reason, you’re unable to repay the loan by the deadline, you may be able to ask your lender to roll over the loan. If it’s allowed in your state, you’d simply repay the fees that are due, and the loan will be extended. Consider all these benefits to help you decide on whether you should get a cash advance this summer.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.