There is always a need for cash so you may probably assert that anytime is the best time to take fast personal loans. A cash advance is a good option. Some people may look at this financial product as a blessing in disguise but there are more who feel otherwise.
For beginners, cash advance is a service or product provided by financial firms for people who need fast personal loans. In other words, it is like taking cash credit from a minor financial institution or a bank. When you take a cash advance, it is like borrowing money for a limited period, usually only a few days. There is no need for collateral, but often, you would be asked to issue a check bearing the principal of the loan plus the accrued interest and dated on a specified term of loan.
Options For Payment
When the check matures, you have two options for payment. You could either personally redeem the check by buying it in exact amounts, or leave the check and instead fund it. One major setback for such fast personal loans is the accrued interest rates, which are almost always very high. The interest rates imposed on such advance loan are always much higher compared to the interest rates imposed on credit cards and other banking loans.
Why People Still Acquire The Loan Even With High Interest Rate
Considering the duration of the loan, the interest charges would further be greater because cash advance transactions usually last for only a few days. It is just not surprising to know that still more people are taking such fast personal loans. Probably, this is because the procedure is easier and faster compared to loan transaction processes at banks and other lenders.
People would always say anytime is the best time to take such a loan because the need for cold cash is always imminent. However, experts and economists think otherwise. For them, there is no best time to use a cash advance, unless there is a very compelling necessity and there is no other means to produce cash.
That is because cash advance transactions impose very high interest rates for a very short length of maturity. For example, an employee who would be receiving his salary 12 days from now may need cash outright. He processes a cash advance loan, writes a check dated on the day after the salary date. The growth of the principal is inevitably rapid and continuous and the borrower could do nothing. He could not even run from the obligation because there is a check he issued.
Who Are Likely To Go For Such Loan
Experts assert that this kind of lending facility only attracts those who are desperate to get cash advances, which include low-income individuals. Thus, those with more money are spared from having to take such risky fast personal loans, while those who find it hard to make ends meet are more exposed to such products because of constant need for cash.
However, if you really could not help taking cash advance loan, then just use the proceeds wisely. The best time to spend a cash advance loan would be just in the time of dire need. For example, if you are dealing with an emergency like health reasons or emergency purchases like treatments. This way, such fast personal loans are also advantageous and helpful.