Thursday, July 5, 2012

Cash Advance Necessity May Trump Credit Card Needs

American consumers have become subject to a bevvy of spending tools and fiscal options including instant cash advance loans and credit cards. Payday lenders have seen a rise in the amount of people who are turning to short-term lending when there is a financial emergency or a struggle to get by until pay day. Credit card issuers have banked on the fact that most consumers can't get by without credit cards; in the sense spending as well as building a credit score for the future.

Credit cards give us flexibility when we need or want to make a purchase and don't have the cash in hand. If it's a large purchase, credit cards give us the option to purchase expensive items without having to pay up front. This is especially so when it comes to booking vacations, financing special occasions like a wedding or birthday party, or putting braces on a child. But if a consumer's credit card is at it's limit or doesn't support the amount the person wants to spend, taking out an online cash advance may become a necessity.

Credit cards help with building a credit score and credit history; something we all need if we hope to having purchasing power for attaining a mortgage, car loan, business venture, or anything else that requires having a good credit score. Interest rates and loan terms on credit purchases, even car insurance and utility rates, vary depending on one's FICO score. But for someone is who not eligible for a credit card or chooses stay credit free, a short-term loan with a reliable cash advance lender can help when there is a need for quick cash.

Credit cards can often help alleviate stress when it comes to money. For instance, traveling with large amounts cash can be nerve racking. Using a credit card for travel expenses can take the away the fear of losing your cash or having it stolen. Once it's gone, you can never get it back. Should that happen with a credit card, you can call your issuer as soon as it happens and they will cancel the card. If someone steals your card and uses it for purchases, you will not be responsible for paying those charges. If you take out a cash advance to travel, consider leaving the cash in your bank and using your credit card, or get traveler's checks instead. These are insured should they be lost or stolen.

If you just aren't interested in taking out a credit card and prefer to use the cash advance option, make sure you borrow from a credible cash advance lender who you can trust. Research lenders online and be sure to familiarize yourself with their terms and conditions including interest rates and fees. If a particular lender catches your eye, give them a call and ask them some questions about their services. If they are willing to answer your questions and aren't pushing you into taking out a loan, chances are they are reliable. A responsible lender will be very up front about what they are offering you.

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