3 Ways to Use a Cash Advance to Your Advantage

A cash advance is a short-term loan that can be used for whatever the borrower desires.  One of the main benefits of cash advance is that borrowers, regardless of their creditworthiness, can get approved same day for the money that they need to cover unexpected expenses for 30 days or less.  In exchange for the funds, the borrower will sign a contract stating that they will pay back a finance charge in addition to the principal borrowed.  While a cash advance is not the answer in every situation, there are quite a few situations where cash advance loans can be used to your advantage.  Here are just 3 ways that you can use a short-term loan to save you money or avoid financial frustration in the future.

#1: Take Your Bank Account Balance Out of the Negative

Having a negative bank account balance can be very expensive in the long run.  Not only will your name be entered into the Check Systems database if you take too long to take your account out of a negative status, you will also accumulate excessive fees in a matter of days or weeks.  One way to use a cash advance to your advantage is to obtain a loan so that the funds deposited into your account will take you out of the negative.


Many banks will charge you a daily rate for the time that your account is in the negative.  Other banks will charge you a fee to transfer funds from your savings to your checking account.  By depositing a cash advance disbursement into your bank account, you can avoid insufficient funds fees, overdrawn fees and even losing your bank account.

#2:  Paying a Car Payment When You Are Past the Grace Period

In some cases, paying your car payment can wait until payday, but if you are more than 10 to 15 days late, it might be in your best interest to apply for a cash advance to make your car payment before the grace period is up.  Almost every lender offers their borrowers a grace period, and during this period of time you will not be charged late fees.  A late payment will not be reported to the credit bureaus unless your payment is received past the grace period.  If a cash advance can save your credit score from being damaged, it is a wise idea to apply for one to make this month’s payment.

#3:  Paying for Minor Repairs Before Major Repairs are Necessary

cash-advance-auto-repairIf money is tight, you may not have a couple hundred dollars to spend on home or auto repairs.  The problem is that, if you choose not to make the minor repairs in a timely manner, the problem will cost much more in the future.  The difference between a hundred dollar bill and a thousand dollar bill could be just a day away.  In fact, you may experience a vehicle breakdown if you do not make the investment into your car before there is a hard failure.  Use a cash advance to pay for the minor repairs, and you can get peace of mind while you avoid paying an expensive repair bill.

Short-term loans are a practical solution in a number of situations, but that does not mean that they are always the answer.  If you have a financial emergency, or paying a bill will save you a significant amount of money down the line, a cash advance is the answer.  When you borrow, make sure you take time to compare fees and finance charges and choose the best cash advance lender offering the fairest terms.