Even with the best will in the world to be far-sighted, parents may find themselves short of financial resources at the same time as preparing for the start of the school year. In such cases, a carefully used cash advance could save you money.
What is a substantive advance?
It is a loan made by credit card. If you have one, just withdraw cash from an ATM. You can also apply online if your bank offers this type of offer.
The amount you can get depends on the credit limit authorized by the financial institution that issued your credit card. The latter takes into account your repayment capacity in particular to determine this threshold.
Repayment: immediate interest
This is where things get tough. In general, the payment term is spread over a month with a fixed interest charge which applies from the same day that you receive the cash advance. In other words, the longer you delay returning the money, the more the amount owed will increase.
However, all financial institutions have their own terms and conditions with regard to cash advances. It is important that you know them before you embark on this process. To do this, you can consult the agreement governing the use of your credit card.
A solution to use sparingly
The cash advance is obtained without proof and proves to be a practical solution to obtain cash immediately. However, you should not abuse this method by using it to increase your monthly income for example. It would be a safe way to get into serious debt with interest. Not to mention the negative impacts on your credit rating.
Cash advances are a solution of last resort, but since back to school is a perfectly legitimate need, just make sure you meet the repayment deadlines.
Another important point: even if you are in a hurry, still think of looking for an ATM with the sign of your bank to save you additional convenience costs. Please note, the application of these fees being different from one distributor to another, you may have unpleasant surprises if you come across an ATM that charges by percentage.
Another alternative: urgent credit in 24 hours
If the maximum amount you can withdraw is limited or if you do not want to jeopardize your credit history, be aware that you can take out an emergency personal loan that is processed the same day.
You just have to call or fill in an online form and fax the required documents including two pieces of identity with your photo, an invoice proving proof of address, your latest pay slips, etc.
The advantages of this credit:
Your request is analyzed upon receipt of a complete file and you will have validation in one hour if you have a good profile;
Money also arrives the same day if you do it in the morning;
Some loan agencies serve you every day and at any time. It is still an urgent need!
You will not be subject to a credit check;
The interest rate is higher than that of a conventional loan, but unlike a credit card, it does not apply immediately;
More flexibility: the packages to borrow and the terms of payment are formulated so as to adapt to your repayment capacities.
In the end, it is up to you to judge which means is the most interesting in relation to your financial situation to quickly obtain the money necessary for your back-to-school expenses. The key is to be well informed and always compare several offers before launching