The Difference between Payday Loans and Cash AdvancesOn November 2, 2018 by Warren Hawkins
People search for payday loans online all the time as borrowers want to get a more convenient way to borrow money. However, there are many borrowers who aren’t sure if they need a payday loan or a cash advance. For some, they believe these two things are the same but in reality they can be fairly different from one another. So, what are the differences between a payday loan and a cash advance?
The Amount of Money You Can Borrow Can Vary Between Cash Advances and Payday Loans
One of the biggest differences between a cash advance and a payday loan is the overall amount of money which can be borrowed. Payday loans online can be anything between one hundred dollars and around two thousand dollars but, with a cash advance the amount which can be borrowed can be significantly higher. Cash advances can be thousands of dollars which means that if you want to borrow a higher amount, a cash advance might be more useful than a payday loan which is usually a smaller loan amount.
Repayment Times Vary Considerably
Cash advances don’t always have a set limit or time in which the money must be paid back. Of course, that doesn’t give borrowers free range to never repay the money but rather it’s not always a set time within a few weeks. However, payday loans usually have a set-out time limit in which the money must be repaid, usually on the next payday. Cash advances aren’t always set out like that, even though they aren’t a long-term loan either.
Payday Loans Online Are Short-Term Loans
In a way, a payday loan is very much like a personal loan. They are usually short-term, unsecured loans and often don’t require any credit checks to be carried out. The only real requirement of the lender to accept approval for a loan is that the borrower must have income to repay the loan. In truth, payday loans are extremely simple and they can be often easier to obtain as well.
Cash Advances Are Different Lines Of Credit
There are a few different types of cash advances, one which is similar to a payday loan, the other, comes from credit or debit cards. For example, you can borrow money or get a cash advance from a credit card; the amount can vary considerably and the borrower would have to repay the amount onto their credit card account. You can get payday loans online and a cash advance and while there are minor differences, you can actually find they are similar in many ways.
Getting the Right Loan for Your Finances
Cash advances are some of the simplest loan options to consider and payday loans can be really quite good as well. However, it’s very important to understand that there are differences between them and they might not both be ideal for every individual as well. When you are looking to borrow money, you have to explore all options and choose the right option as well. Payday loans can be fantastic for thousands who want and need a short-term, smaller loan.