Understanding Check Advances

When financial stress is at an all-time high, an emergency can hit when you least expect it. If you’ve recently drained your savings for other expenses, the cost of a new emergency can fill you with dread. Sometimes going through an extensive loan process feels like too much, and most traditional banks require a higher amount than you may need if you’re only looking for a little extra cash instead of upping your overall debt.

When you’re faced with the choice of taking out a larger loan than you want or need, you may want to consider a quick and less extensive option, such as a check advance. 

What Are Check Advances?

Check advances pay you a short-term cash loan that you’ll usually expect to pay back, with a fee, within your next check. These types of loans are typically utilized for unexpected costs. Locating loan options like this can be done with an online search in your local area, such as, check advance Mississippi. You’ll be able to pull up a quick list of options near you and decide if one is a good fit.

This type of short-term cash loan comes in a couple of methods:

  • Payday Loans
  • Credit Card Cash Advance

With a payday loan, you’re essentially given a portion of your check early. The amount is dependent on what you earn and will be expected to be paid in full, along with the fee, within your next check.

Credit card cash advances allow you to use your credit card to withdraw cash from your credit limit at an ATM. Interest starts accruing right away, so the longer you wait to pay it back, the higher the fee.

When Should You Use It?

This option is useful for people who may not have established credit, have low credit, or don’t want to go through the lengthy process of a large loan at a traditional bank. It can help prevent highering one’s debt and keep the loan process simple by offering smaller amounts. 

Utilizing a check advance when you need it, can be a huge relief. Especially if something happens and you need to buy groceries, get gas, or fix a smaller car repair. 

Like any loan, do your research and make sure the advance is something you can pay back without being too strained on your next check. For many people, having the flexibility of a cash advance can save a lot of stress and help you manage whatever curveball gets tossed your way.