Is a Small Cash Advance Best?
Bigger isn't always better, and this maxim holds true when it comes to cash advances. After all, if you take out a big cash advance, you're responsible for paying back interest on every dollar. On the other hand, with a small cash advance, you have to pay much less interest, as the principal is lower, even if the interest rates are the same (and they will often be lower for small loans than big ones). You can see why it's an advantage to borrow a smaller amount of money whenever possible.
The disadvantages of a big advance are numerous. It's harder to find them, as payday lenders are reluctant to give out such a large sum of cash and risk losing it all at once when they could give several smaller loans to others and lessen the impact of losing any one of those loans to a defaulting borrower. Because of this higher risk, the interest rates are also higher, and there's a good chance you will have to undergo a credit check to take out the loan at all.
A small cash advance is more readily available, more easily paid back, and costs less than a bigger one, since you are being charged interest on fewer overall dollars. When it comes time to repay the advance, it won't make such a big impact on your next paycheck, so you have more money to live upon until the following paycheck. It's clearly a good idea to opt for this choice if at all possible.
It's not always possible to take out a small cash advance, however. You can tell which option you need if you do some budgeting, as you should already be doing in preparation for taking out the advance. Plug in the numbers to see what the impact on your next two weeks or month will be when paying back the smaller amount versus a larger loan, and calculate just how much you will need in order to pay off crucial bills.
Fees and interest rates are two of the most important things to examine in detail before deciding which small cash advance offer to accept. Any fees that are charged for late repayment, bounced checks, or any other service or penalty are worth noting, just in case it becomes necessary to delay your repayment of the advance. A small cash advance can grow a lot bigger if you count all these factors!
A small cash advance might be just the right amount of help you need in order to get through to your next payday.