What Is a Cash Advance, and How Does It Work?

Life doesn’t always signal lane changes. When the unexpected happens, you may need help to bridge a financial gap between paydays. A Cash Advance can help you pay for those emergency expenses or higher-than-expected bills.

Before you make any financial commitments, be sure you understand how a Cash Advance works so you can decide if it’s the right choice for you.

What is a Cash Advance?

The term “cash advance” can refer to one of two different kinds of financial products: 1) a credit card cash advance; or 2) a Cash Advance loan. As such, it’s important to know which one a lender offers since these are two totally different types of cash advances.

Credit card cash advance

A credit card cash advance is tied to your credit card account and is a way to withdraw money from your available credit. The amount you can borrow is limited to a percentage of the credit available on your card.

Unlike personal loans, this type of cash advance is repaid as part of your monthly credit card payments.

Cash Advance loan

Cash Advance loans, which are commonly called Payday Loans, are small-dollar loans issued by a payday lender. These loans are designed to be repaid on your next payday (typically within two to four weeks), and the amount you can borrow is largely determined by how much you earn.

Benefits of a Cash Advance

There are a few reasons people choose to get a Cash Advance over other types of personal loans:

Convenient application process

Cash Advance loans are quick and convenient to apply for. You can fill out and submit an application online from your computer or mobile device. Or, if you prefer, you can find a direct lender and visit their location to apply in person.

Quick funding

If approved for a Cash Advance loan, you won’t have to wait long to receive your funds. In fact, you could have access to your money as soon as the same day you apply or on the next banking business day.

Flexible credit requirements

You don’t need perfect credit to get a Cash Advance loan. Lenders like Advance America tend to have less strict credit requirements than traditional banks and consider your employment history and income. This is good news for borrowers who have credit problems, are repairing their credit, or have yet to establish a credit history.

What can a Cash Advance be used for?

There are no restrictions on how you use your Cash Advance money. For example, you might use the funds to pay for:

• Medical bills
• Vet bills
• Car repairs
• Home repairs
• Home appliance service calls

Cash Advance Loans can also be used for essential monthly expenses like utility bills, groceries, or rent if you find yourself in a financial pinch.

Can I get a Cash Advance loan with bad credit?

Yes, you may be able to get a Cash Advance with bad credit. While lenders typically run a soft credit check, they’ll also look at your employment status and the amount of income you earn when deciding whether to approve you for a Cash Advance loan.

More lenient credit requirements can make Cash Advance Loans a good option if you need money but won’t qualify for a traditional bank loan due to poor credit.

How to get a Cash Advance loan

Getting a Cash Advance Loan is a straightforward process:

1. Check your credit report

Before you get started, it’s a good idea to check your credit report so you know what information lenders will see when you apply. It’s easy to request a free credit report from the three major credit bureaus, and checking your own credit won’t affect your credit score.

Once you have your credit report, you’ll have a better idea of the types of credit you might be eligible for.

>Related: What Is a Good Credit Score?

2. Research Cash Advance lenders

Spend some time researching options so you can choose a trusted lender. Read recent reviews on sites like Google and Trustpilot to see what customers have said about their experiences. If you see mostly positive reviews, it’s a good sign!

Advance America has over 200,000 reviews on Google and more than 80,000 5-star reviews on Trustpilot. Visit us online or in-store and you’ll see why our customers rely on us!

3. Choose a Cash Advance loan and lender

Compare the terms and fees for Cash Advance Loans offered by different lenders to select the specific loan that best meets your budget and expense needs. Be sure to look on the lender's website for their application requirements.

4. Gather your information and documents

Make sure you have the information you’ll need to fill out the lender’s application. Most lenders require your government-issued identification and proof of income, which can include recent paycheck stubs or tax returns.

You may also need to provide the routing and account numbers for a valid and active checking account. This way, the lender can deposit the loan funds directly into your account.

5. Apply for the Cash Advance loan

Navigate to the lender’s online application and fill out the required information at your convenience. Or, if you prefer to apply in person, visit the lender’s nearest location. Either way, be sure to have all the information you’ll need for the application.

6. Wait for an approval decision

Once you submit your Cash Advance Loan application, you’ll receive an approval decision in a short period of time. Many lenders will let you know within minutes if you’ve been approved.

7. Receive your money

After you’ve signed the loan agreement, you should receive your Cash Advance Loan quickly, sometimes as soon as the same day you apply. If you miss the lender’s same-day funding window, then you’ll likely receive your money on the morning of the next business day.

Is a Cash Advance right for me?

It’s always a good idea to ask yourself a few questions before applying for any type of financing. You want to be realistic about your financial situation and weigh the pros and cons of getting a loan. Used wisely, Cash Advance Loans can help you avoid late fees, disconnected services, or other penalties if you’re not able to pay bills or other monthly expenses on time.

As long as you know you can repay the loan in full on your next payday, a Cash Advance can be a good solution for the occasional financial hiccup many of us experience.

Get a Cash Advance from Advance America today

For more than 25 years, Advance America has been providing financial services to borrowers with all credit types. Best of all, you’ll know within minutes if you’re approved.

If you’re facing an emergency expense, a Cash Advance Loan may help. Start your online Cash Advance application now!