Many people look for ways to come up with money when unexpected expenses come up, and some are torn between credit card advances and loans from short-term installment loan lenders. Here, you’ll learn why installment loans are preferred over cash advances.
Steady Payments
While a credit card cash advance’s payment amount may fluctuate, with an installment loan, that amount stays constant over the entire term. Before signing for the loan, you’ll be provided with loan terms that outline how much you’ll pay, and for how long. When you opt for a personal loan over a cash advance, you’ll get the benefit of predictability.
A Firm Ending Point
Another big benefit of short-term or installment loans is that repayment comes with a set ending date. These loans are for a predetermined period; when you get them, you’re told when your payments will end. This isn’t true of credit card advances, where interest is added to the balance each month. Unless the balance is fully paid off, payments could be almost indefinite.
Borrowing for Those With Bad Credit
If you’ve got bad credit, you may only be able to get a cash advance if you have a secured credit card. Here, your credit limit is equal to the amount you have on deposit with the issuing authority. While a secured card will help you build your credit, it won’t do much to help you meet a short-term need for cash. However, with help from short-term installment loan lenders, you can get the money you need.
Learn More Today
Finding funds during an emergency can be an almost impossible challenge. While it’s tempting to take a cash advance on a credit card, the benefits of short-term installment loans make them a more appropriate choice.
