subject: How To Take Advantage Of Cash Advances [print this page] Cash advance companies comprise a growing industry in the US. The ease of application coupled with the minimal requirements proves as effective enticement for most employees to get this loan. However, as ideal as the loan may sound, it definitely has some strings attached to it.
For instance, many companies charge an additional 15 to 24% interest rate on amounts borrowed. Therefore, if you borrow $1000, theres a legal chance that the lending company can charge you $240 as interest. Youll end handing over $1240 as loan payment on your next payday.
However, if youre still bent on getting a cash advance, it might be best to look for reputable loan companies. This will help you avoid getting charged inflated interest rates. It will also be helpful to plan how youll pay the loan. Doing these two will set you on the right financial course in the future. For other tips on how to take advantage of a cash advance, read the following.
Limit the amount youll borrow.
Keep cash advances at a minimum amount because you dont want to end up paying large amounts later. Remember that when you borrow from a company, you end up paying principal amount plus interest. Having an ideal limit should set you on the right track because youll know how much you can pay.
Make it a 50-50 cut on the loan
Try borrowing half the amount you need from friends and half from cash advances, so you pay for lower interest. For instance, if you need $600, borrow $300 from friends and $300 from the company. This way, you wont have to worry about paying the loan company a large amount on your next payday. The money you borrow from friends and family relatives will not earn interest, making them easier to pay off later.
Resort to paying the loan faster
Cash advances earlier than the loans due date will usually incur lower interest rates, so try your best to pay off the loan a few days after borrowing. Cut back on costs dramatically by lowering food and transportation expenses for the next two weeks, so you can be free from the loan faster.
