As you manage your monthly budget and cashflow, it can be difficult to stay on top of all your expenses. At times, you need just a little more money to get by. This is where cash advances come in, but how do cash advances work? Where can you get them, and how do you pay them off?
How Do Cash Advances Work?
A cash advance is a tiny infusion of cash offered by a financial institution. Keep in mind, however, this is not a loan. Generally, you get a cash advance with little to no interest and affordable payment terms.
Where Can You Get a Cash Advance?
Generally, cash advances come from credit card companies, adding that amount to your total balance. However, some financial platforms offer no-cost cash advances, adding that money to your account, issuing a direct deposit or sending a check.
How Do You Repay a Cash Advance?
If you accept a cash advance from a credit card issuer, you will likely make a payment on that advance along with your regular monthly payment. Generally, you pay no interest on cash advances from online financial platforms, but you may be subject to interest rates charged by credit card issuers.
How Much Money Can You Access With a Cash Advance?
Depending on the issuer, you can access either a percentage of your total available credit, a set amount or a range of amounts dictated by the financial institution.
If you’re working with a digital financial platform, instant cash advances are often small, but they are easy to get. In fact, many of these platforms allow you to access a cash advance via the mobile app.
Who Can Use Cash Advances?
Anyone can use a cash advance. There are times when you might need a little additional cash, and you should look to a cash advance instead of a loan that likely has high interest rates or complex repayment terms.
Cash advances can help you with:
- Unexpected expenses
- Travel expenses
MoneyLion is a financial platform that aims to help the 99% feel 100% about their finances. To that end, the platform offers several services, including:
- Mobile banking
- Cashback rewards
- No hidden fees
- Financial calculators
- Buy now pay later options
- Investment accounts
- Crypto accounts
- Credit builder loans
- Instacash advances