If you’ve ever found yourself at a cash-only café with nothing but plastic, or tried to pay a driver who doesn’t accept a credit card, then getting a cash advance would be a good idea. These days, when it seems that you can pay your way through pretty much anything with just a credit card, using cash – while ideal – may seem rather quaint. But you will bump into those everyday situations that require some hard-earned dough, and you might feel confused as to what to do next.
Getting a cash advance can be as simple as going to your bank and showing your ID. It’s fast and convenient in a pinch. But, is it still a good idea? There are a few instances in which it could be a viable fallback plan.
This article is a quick refresher to help you mull it over.
Traditional Financial Advice
The conventional wisdom against cash advances preaches that it is perhaps one of the worst things you can do, and it will plunge you into a deep, dark hole of debt. But, it depends on how you use it, and how often. If, for example, you have a hefty overdraft fee on your checking account that you’d like to avoid, then a cash advance might feel safer as opposed to seeing a bounced check.
Another option most would urge you to try is a Certificate of Deposit (CD), which is an early withdrawal you can make if you need cash right away. Unfortunately, CDs are meant for long-term deposits, so you might face lots of penalties or have it canceled altogether if you don’t abide by the terms of the agreement.
A personal loan is the most involved of these options as you actually have to walk into the bank and apply for a loan. Interest rates on 24-month personal loans are lower than that of most credit cards, but the fact is that this won’t help you if there is an emergency.
Inheritance Loans and Other Solutions
If none of the above options work for you, then a cash advance might be the best solution. Especially if you are set to inherit some money from a family member or friend, but need the cash immediately to pay for school or a medical emergency. However, the financial advisors over at https://www.probateadvance.com/inheritance-loan/ would urge caution in working with a bank that will help rather than hurt your finances in the long run. High-interest rates are a trap, and who wants to waste more money on that?
To answer our initial question: no, cash advances nowadays are not necessarily a bad idea. In fact, compared to the other fees, you might have to pay on your CD or credit card, it could be the solution to a number of financial woes. Things in the banking world has changed quite a bit these days, and cash advances are no longer the scary plunge they seemed to be a decade ago. So, if you find yourself trapped in a difficult situation – whether it’s with an irate cab driver, or you need some money for an emergency – cash advances can be helpful, if you play your cards right.