Posted by Larry Hurt

Cash Advance Alternative that Will Save You Some Money

Cash Advance Alternative that Will Save You Some Money

A credit cash advance is a cash loan issued from the credit card company. The cash advance will appear like a transaction on your account statement, which will attract interest until it's paid. Cash advance comes without a grace period as it attracts interest from the day of the transaction.

Also, cash advance comes with a higher interest rate compared to other means of getting cash. With this in mind, we advise that you understand the implications, limitations, and alternatives of a cash advance before considering it.

Here are some worthy alternatives worth considering:

Move the Balance to a Zero-Interest Credit Card

This is an option recommended for people that pay off their debt on time. In this case, you might need to make an exception to prompt debt repayment.

Instead of paying cash advance fees and the interest, get a credit card that offers zero interest and transfer a great balance there. You can then use the money that should have gone as the card payment for whatever you need, rather than a cash advance.

Pay With a Credit Card 

There is a significant probability that what you need a cash advance for will be better paid for with a card because of the lesser fee. Since you can pay almost anything with a credit card, with lower charges, it is a good alternative.

Some examples of things you can pay with credit cards are:

  • Income taxes: there are companies specified by the IRS that accepts credit card payment for tax. If you run a business, for instance, you can employ these services for the number of your annual tax bills.
  • Rent: Place or RentMoola allows you to pay rent using your credit card. Usually, there is an arrangement with a homeowner to have checks sent to them. If you divide the payment fee between your roommates, there is the option of paying with two cards.
  • Tuition: You can pay your tuition via a platform known as Plastiq.

Borrow Money from Family and Friends 

You can also reach out to your family and friends to help you out with a small amount of money. We recommend drawing simple payment terms that will favor both parties. This is to avoid any awkwardness that might want to arise from this.

Make sure, however, that you are diligent with paying back the money. Bear in mind that it might be uncomfortable for your lender to remind you of the loan.

Sell Some Assets

A careful examination of your possessions will reveal that there are some things you can do without. There will be many things lying in your basement that you used a long time ago. Selling off those assets can help you make some quick cash.

Take a walk around your house and consider cloths, handbags, and shoes you no longer use. Dedicate a day to clean out your attic and garage. You will be surprised at the amount of money you will make when you sell off the items around.  

You can either have your garage sale or sell these items to the local resale shops. If you are not too pressed for cash, use websites like Craiglist, eBay, or apps like LetGO and OfferUp to sell these items off. 

Get Your Wages without Waiting for Your Payday 

It is not a good way of life to depend solely on your paycheck. This means your source of cash is limited, which can affect you a lot, but there are other options.

There is a free app called Earnin. It allows you to get access to your paycheck whenever you want, without waiting until the end of the month.

For instance, assuming you worked for six hours today. You can log into Earnin, even if you are a salaried, contract, or an hourly worker, and get the payment for the six hours worked. Earning does not allow overdraft; hence, you can only take up to $100 per day.

Earnin does not charge a fee or annoying interest rate. You will, however, be required to pay what you think is fair. You must, however, meet some requirements to qualify for Earnin. They are: :

  • Your employers must make direct deposits to your checking account
  • You should have a fixed and regular payment schedule. It could be weekly, monthly, bi-weekly or semi-monthly
  • You should have a fixed work location, or there should be an online system of keeping time at work. This is required for Earnin to confirm that you are indeed working!
Larry Hurt
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