Cash Advances - Short Term Loans vs. Long Term Loans

by : Michael Tagnani

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This issue will be debated as long as the cash advanceindustry exists. Advocates for short term lending argue that it is a necessityfor people that do not have other means of financing. On the opposite spectrum,advocates for long term loans argue that cash advance companies are basicallylegal loan sharks. In the end, it comes down to personal choice. Have you ever beenin the position of needing cash quickly? It can be stressful. A cash advancerelieves that stress for many people.

Short Term CashAdvance:


Ï?????No credit checks

Ï?????One time payment

Ï?????Minimal paperwork

Ï?????Easy qualifying with stable employment

Ï?????Money available the next day


Ï?????Higher interest rates than traditional loans

Ï?????If you’re poor at budgeting, it can be difficultto repay the balance

Ï?????Your timely repayment will not be reflected onyour credit report

Cash advance offers quick money to people with urgentfinancial issues. Using a short term loan for other matters, such as makingexpensive purchases, can compound your financial problems. A cash advance canbe a good solution when you encounter a financial emergency and when you knowyou will be able to repay the loan on your next pay date. It boils down tobeing responsible about your finances. Know what you can and can’t afford. Whenyou find yourself in a tight financial position and in need of a cash advance,be sure to budget for the repayment so you can get back in track as quickly aspossible.

Long Term Loans:


Ï?????Lower interest than a cash advance loan

Ï?????The borrowed amount is higher

Ï?????If paid on time, it will reflect positively oncredit report


Ï?????Long term monthly payments

Ï?????Credit check will be required

Ï?????Loads of paperwork

Ï?????Money is not generally available right away

Ï?????Will negatively affect your credit if paid late

Long term loans are a great way to fund major projects orpurchase big ticket items. When you need to do home improvements or want to buya new car, a long term loan is going to be the best option. If you have goodcredit, your interest rate will definitely be lower than a cash advance.Realistically, however, a long term loan will not help you in a pinch. Longterm loans can be rather involved and they can take weeks to finalize. It willnot help when the electric bill is due at the end of the week.

Long term loans and short term loans are used for twototally different situations. People that use cash advance services are happythey’re available. They are usually met with a crucial financial problem and acash advance offers a timely resolution. People who complain about themgenerally don’t have to use them. In the end, the decision is made by youPsychology Articles, theconsumer. You must decide if paying a higher fee is worth getting the fast cashyou need.