Keeping Cash Advance Fees to a Minimum
When you are short of cash, a cash advance could just be the right solution for this monetary emergency. They are easy to apply for and easy to get. However, if you obtain these short term loans often, they can also cost you a small fortune because you will be charged cash advance fees for every transaction.
The key to keeping your cash advance fees to a minimum lies in borrowing only a small amount that you need to see you through until your next pay cycle. It is tempting to get more than you would need because these small loans do not involve a long process for approval. If you need the money you want to borrow to pay your bills on time, then discipline yourself to borrow only that amount. This will save you from going overboard with your expenses. Also, if the balance is kept low, you will also have lower cash advance fees to contend with.
Some conservative financial gurus would even advise borrowers to obtain an amount that is less than what they would really need. To illustrate—if you need a total of $300 for some house repairs, you can apply for only a $100 or $200 cash advance. To save on cash advance fees, you could then borrow the remaining amount from friends or relatives who might be able to lend you the money with no interest charges.
Avoid knee-jerk transactions. You should get to know some of the better lenders who might offer smaller cash advance fees for these small loans. Before cash emergencies strike, it’s best to be prepared and to know ahead where to get the good deals. Usually, cash advance fees cover 15 to 20 percent of the amount you borrowed. Every dollar counts so it is important to find the lowest interest rate that there is available.
On top of knowing the cash advance fees, you also need to ask the prospective lender what some of the other charges might be. You need to inquire how much a late payment will cost, and when the payments are usually due? You should be able to find this information on a lenders website and in the terms and conditions of the loan contract. Make sure you look for these details before accepting a loan offer from a lender.
You can avoid additional charges by making sure you pay the loan amount before the due date. If you are no longer suited for the payment arrangement that was established at the beginning, it will be cheaper for you to propose modifications in regards to the repayment. You will need to discuss this with your lender, as it could save you from a pile of late payment penalties.
The best option to keep cash advance fees to a minimum is to pay off the loan well before the due date if you can. Usually, small loans need to be repaid within two weeks time. If you can raise the amount of money you borrowed before that, an advance repayment will get you off the hook and put you on a better financial path.