Large Cash Advance and the Risk of Obtaining One
A cash advance is similar to that, and there are cash advances because some people need a small amount of money fast for emergencies. A large cash advance is hard to release and definitely hard to pay off within a week. That is why it is somewhat risky, especially for those who are unfamiliar with it.
Lenders Offering Large Cash Advances
The typical cash advance that most people know is the one that comes from credit card withdrawals, and almost all credit card companies today offer cash advance services for their clients. All you have to do is go to the nearest compatible ATM and withdraw the amount that you want to loan as payday loan or a large cash advance.
Take note that every credit card has a ceiling amount for the cash advance each month. Most people think that the ceiling is actually the credit limit. With some credit cards, the ceiling is also the credit limit., but with most credit cards, they offer only at least 30% of the credit limit for the cash advance.
Also take note that credit cards charge high rates for cash advances. If you take out a Magnum cash advance, also expect to pay a large fee of about 20% to 30%. The case is different with lenders, which is why it is important to do comparison shopping.
Lenders also offer cash advances, but with minimal interest rate of only about 15%, which is obviously a lot smaller than the 30% interest rate from credit card cash advances. The quick loan from these lenders may not be as fast as getting cash from an ATM, but a few hours of filling forms and waiting are certainly worth the savings you can get.
How Large are Large Cash Advances?
It is not difficult to know how large the large cash advances are because a cash advance or payday loan is only about $300. However, there are lenders who can lend up to about $1,500. This larger amount is therefore considered a large cash advance.
In some cases, the Magnum cash advance can be higher than that. For instance, some lenders allow borrowers to get about 50% of their net salary every month or they will base the maximum amount that you can borrow by your capability to pay. If you earn $5,000 every month, you can take up to $2,500 for a payday loan. You can receive more if you have other sources of income. The number one consideration of lenders is always your capacity to pay the large cash advance, no matter how large it is.
Large Cash Advance from High Risk Merchant Accounts
The high interest rate is actually dependent on your capacity to pay. If you are considered a high risk, you will also endure a high interest rate. However, borrowers with a good record from Teletrack, or other similar credit reporting agencies, can always request for an adjusted and lesser interest rate.
Risks with a Large Cash Advance
Although applying for a large cash advance is sometimes helpful, it can also be a way to bury you further into debt. Take note that most lenders that offer Magnum cash amounts for a large cash advance are the high risk merchants. They usually give loan amounts at a high interest rate of about 30%. That is certainly higher than what credit cards offer for a large cash advance. If you will apply for a $1,000 payday loan, you will have to pay $300 every week.
What if you cannot pay for the large cash advance within the first week? Every week will mean paying another $300. After a month, you will have to pay a total of $2,200, including the principal. After two months, you will owe $3,400. That is a large debt for someone in a financial crisis has to pay.
So although a magnum cash advance is possible, it’s not always a wise choice especially if you are not sure that you can pay off the principal and the high interest rate. You might just be trapped into paying the interest rate over and over and over again with a large cash advance.
Getting the Best Large Cash Advance Deal
Always be a wise consumer, even if you badly need cash. Your urgent need for money is not an excuse to give in to the high risk lender’s demands. One of the wisest things that you can do is to compare rates from different high risk lenders, so you will know that you are picking the best.
Also, being able to negotiate is a very important factor when getting the best deal. Lenders are easy to speak with, and especially if you know the art of negotiation. You can negotiate for a lesser interest rate or a more flexible way of paying off the debt. You can also negotiate with the credit cards company to see if they can charge a lesser fee for the cash advance. This works best with credit card companies that have a good relationship with you.
Always shop around for better options than a Magnum cash advance. There must be better ways to raise money than applying for a high-interest cash advance. Always think out of the box before considering a risky option, like a large cash advance.
When there is no other way, you can still use a large cash advance properly to ease you out of a financial burden.