Financial emergencies happen to the best of us, which is why it’s always a good idea to set aside an emergency fund. But if you don’t have an emergency fund, it’s also possible to take out a cash advance loan to cover the expense.
However, this can be challenging for individuals with bad credit. You may have a hard time getting approved for a personal loan, and if you are approved, you may get stuck with terrible interest rates. This is why many people turn to cash advance loans.
A cash advance loan is a short-term loan that is meant to provide temporary relief from financial problems. This includes things like payday loans or cash advances from a credit card. This article will go over some of the best options available to you.
5 Short-Term Cash Advance Loans to Consider
Short-term loans are given in smaller amounts, and the loan term won’t be longer than a few months. These loans are easy to apply and qualify for, even if you have bad credit.
You’ll apply either online or in-person, and the application process is usually pretty quick. Once you’re approved, the lender will give you the cash, minus any fees. The fees for short-term loans are based on the amount you’re borrowing.
If you’re in a true emergency, need access to cash, and don’t want to take out a payday loan, it could make sense to get a cash advance loan. But you’ll want to make sure you compare lenders and understand the loan terms and conditions.
Short-term lenders tend to charge incredibly high fees that can trap you in a cycle of debt. There being said, if you need to take out a short-term loan, here are five options you can consider.
MoneyMutual is an online lending marketplace that connects borrowers with lenders across the country. You can apply for a cash advance loan of up to $2,500 and receive the funds within 24 hours. The online application process is quick and easy to complete.
The rates vary depending on a borrower’s credit score, but consumers with bad credit are welcome to apply. However, you will need a monthly income of at least $800, and MoneyMutual is not available to borrowers in New York.
CashUSA is another online lending marketplace that helps consumers with bad credit access cash advance loans from $500 to $10,000. APRs range from 5.99% to 35.99%, with repayment terms up to 72 months.
If you use CashUSA, the application process is easy, and you’ll receive a decision within minutes. The funds will be deposited in your bank account, and you can get your money in as little as one business day.
CashAdvance is a one-stop-shop for short-term cash advance loans. The company will connect you with its network of lenders and offers loans up to $1,000 or more. You can apply online. It’s very quick and easy.
To qualify for a loan through CashAdvance, you have to be at least 18-years-old and earn at least $1,000 per month after taxes. Your repayments will be automatically deducted from your checking account every month.
Bad Credit Loans has been connecting bad credit borrowers to its network of lenders since 1998. You can apply for a loan between $500 and $5,000 and receive the funds as soon as the next business day. The interest rate ranges from 5.99% to 35.99%, depending on your creditworthiness.
It’s easy to submit a loan request and you have a good chance of being approved, even if you have a bad credit score.
PersonalLoans.com is another lending network, but unlike some marketplaces, it is available everywhere in the U.S. You can apply for a loan between $500 and $35,000, so this is a suitable option if you need a more substantial loan amount.
The interest rates range from 5.99% to 35.99%, based on creditworthiness. The application and approval processes are quick and you can receive the funds as soon as the next business day. However, if you’re looking to borrow a large sum of money, the approval process may take longer.
3 Credit Card Cash Advances to Consider
The installment loans above may require a credit check. If that doesn’t seem like the best option, you can also consider a credit card cash advance.
If you have the funds available on your credit card, this could be an easy option for you. However, not all credit cards allow cash advances, and those that do tend to charge very high fees. And once you’ve taken out the money, interest will start accruing immediately.
To receive the money, you can visit your local branch. If you’d rather make a cash withdrawal from an ATM, you’ll need to call the bank and set up a PIN. Listed below are three credit cards that may be good for cash advances.
PenFed Promise Visa Card
PenFed Credit Union issues this card. Borrowers with a fair credit score can qualify for this card and the APR range is 11.24% to 17.99%.
PenFed doesn’t charge cash advance fees on any of its cards, which is pretty uncommon. Most credit cards charge cash advance fees between 3% and 5%. It will charge interest on the amount you withdraw, though.
Capital One Platinum Credit Card
This card is easy to apply for and available to bad credit borrowers. The regular APR is 26.96%, which is on the high side, and it doesn’t offer an introductory APR.
But you will have access to cash advances, and the company charges a 3% cash advance fee. This isn’t as good as what PenFed offers, but it’s lower than some.
First Access Solid Black Visa Credit Card
The First Access Solid Black Visa card isn’t going to be your best option, but it is available to borrowers with a poor credit history. The APR is 34.99%, which is much higher than what other credit cards charge. But if you need to take out a cash advance, there are no cash advance fees apart from the interest.
How to Avoid High-Interest Rate Bad Credit Loans
There are several things you can do to avoid dealing with payday lenders and online payday loans. For the short term, consider an installment loan. For the long term, work to rebuild and repair your credit.
Short-Term Personal Installment Loans
Personal loans are a type of installment loan that charge a far lower interest rate than payday loans. Rather than applying for an online payday loan with a payday lender, you may want to consider looking into personal loans for bad credit. There are several lenders, including the ones mentioned above that offer installment loans to borrowers with bad credit.
Establishing and Repairing Your Credit
If you’re dealing with poor credit scores, you’re going to need to either establish or repair your credit. You’ll want to start by grabbing a copy of your free credit report from each of the three major credit bureaus at AnnualCreditReport.com to see what needs to be done.
From there, you’ll need to figure out what you must do to raise your credit score. Check out our free Do-It-Yourself Credit Repair Guide or if you prefer to work with a professional company, check out our list of the top credit repair companies.
Consumers who are having credit difficulties may also want to seek credit counseling.
Things to Keep in Mind with Bad Credit Loans
Sometimes, financial emergencies are unavoidable and you’ll have to find a way to get through them. A short-term loan or cash advance can be a way to close the temporary gap in funds.
Make sure you read the loan agreement carefully and repay the loan promptly. Then, begin working on building up your savings and emergency fund. This will help you avoid getting into this situation again in the future. And here are a few things you should consider before borrowing money from anyone:
- Have a plan for how you’ll repay the money.
- See how the Better Business Bureau rates the company you’re considering.
- Read the loan agreement and terms and conditions before agreeing to anything.
- Make sure you know exactly what fees you’ll end up paying on a cash advance.
Cash Advance Loans for Bad Credit FAQs
What is a cash advance loan?
A cash advance loan is a short-term loan that provides you with access to cash quickly and with relatively few requirements. Cash advance loans typically come with higher interest rates than other forms of credit and require repayment within a short period of time.
Cash advance loans are often used to cover emergency expenses or to bridge a temporary gap in your finances. They can be helpful in a pinch. However, they should be used with caution as they can be expensive and can lead to further financial difficulty if not managed properly.
Are cash advance loans the same as payday loans?
Payday loans and cash advance loans are basically the same thing and the terms are used interchangeably. They are typically used to fulfill short-term cash needs and essentially serve as an advance on your upcoming wages. However, the cash advance loans we mentioned above, while they’re still high, have much better rates than typical payday loans.
Payday loans and title loans are notoriously expensive and should be avoided whenever possible. The Consumer Financial Protection Bureau (CFPB) warns that the average 2-week APRs on payday loans is almost 400%.
Can you get an emergency loan with no credit check?
Some lenders do provide emergency loans without credit checks. However, most lenders will conduct a credit check to verify your financial history and creditworthiness before approving a loan.
Many lenders offer emergency loans with bad credit, so you may be able to qualify for a loan even with a poor credit score.
How do I apply for a cash advance loan?
You can apply for cash advance loans online or in-person. To apply online, you will need to provide personal information, proof of income, and bank account details. To apply in-person, you may need to provide additional documentation, such as proof of identity.
What are the requirements for cash advance loans?
The requirements for cash advance loans will vary depending on the lender. Generally, you must be at least 18 years old, have a regular source of income, and have a valid bank account.
How much can I borrow with a cash advance loan?
The amount you can borrow with cash advance loans will depend on your income and the lender’s policies. Typically, you can borrow up to $1,000 or 25% of your monthly income.
How long does it take to get a cash advance loan?
The loan application process for cash advance loans is typically quick and easy. In most cases, you can get the money you need within 24 hours.
Will an emergency loan impact my credit score?
Emergency loans can have an impact on your credit score. Whether the effect is positive or negative depends on whether the lender reports your payments to the credit bureaus. In most cases, lenders only report emergency loans if you default on the loan.
When taking out an emergency loan, it is important to make sure that you can afford the payments. If you cannot make the payments, it is best to look for other options. If you are late with payments or default on the loan, it can have a negative effect on your credit score.
What are the fees associated with cash advance loans?
The fees associated with cash advance loans will depend on the lender. Typically, you will be charged a one-time fee and an additional fee based on the amount you borrow.
How long do I have to repay a cash advance loan?
The repayment period for cash advance loans will vary depending on the lender. Generally, you will have up to two weeks to repay the loan.
What happens if I can’t repay my emergency loan?
If you are unable to repay your emergency loan, the lender may charge additional fees or higher interest rates. In some cases, they may even take legal action to collect the debt.
Are cash advance loans safe?
Yes, cash advance loans are typically safe. However, it is important to do your research and make sure you are dealing with a reputable lender.