If you find yourself in a financial unrest, you don't need to starve yourself. Get a financial aid, play smart, and pay it back. Find the right loan option, follow the procedure, and keep up with your payment plan. Pick a consumer-oriented loan plan like “Installment Loan,” especially if you don't want the loan to haunt you.
Following, we are going to point the differences between an Installment Loan, and Credit Card Cash Advance, and describe why you should take an installment loan instead of the latter.
When you borrow a credit card cash advance loan, you soon notice the payment amount fluctuates every month. Moreover, the interest rate and minimum payment will change, and you may need to pay additional charges like transactional fees.
When you use an installment loan, you are confident that the payment amount will remain the same, and you have a long tenure to pay it off. Your loan terms including interest rate and the total balance depend on how much time you need to pay it back.
So if you want a simple and predictable payment plan, you better take an installment loan instead of credit card cash advance.
Credit cash advance doesn't have a specific end date as they lack a proper tenure. When you take an installment loan, you get a pre-specified date till when you can pay back the whole amount. Unfortunately, it won’t happen if you took a credit card advance.
You are forced to use a revolving credit whenever you carry some remaining balance to the next month. The charges will add more interest, and unless you pay back every dime, your payments will continue to increase.
In worst cases, the credit card company can charge interest on cash advance right from disbursement date.
In case you got bad credit, you need a secured card to take a cash advance. This suggests you can take as much cash as you have in your deposit. This can help you improve your credit score, but it won't meet your financial needs.
You can't dismiss a financial emergency with limitations on how much you can borrow. On the contrary, an installment loan gives you freedom on how much money you can borrow to settle your financial issue easily.
While Installment loan takes the win all three times, there is one shortfall it shares with Credit Card Advance. Although installment loans offer better benefits, still finding a good lender is a tough challenge.