Cash Advance Loan - How is it Different from a Credit Card Cash Advance
Dean Shainin

In short term loan parlance cash advance loan is the same as a payday loan.

This type of loan allows the borrower to get cash in advance of the next paycheck. The only collateral often required is your job and a statement of your income. There are several stores and definitions for the different kinds of variations that a short terms cash advance has.  There is for example the payday loan, the online payday loan the fax payday loan, payday cash advance loans etc., but the idea, even if there are slight variations, remains the same. That is, to get an advance against a forthcoming paycheck. The qualifier is a steady stream of income that is provided by a proof or a statement.

The credit card cash advance however is different from a cash advance loan. A cash advance loan will provide immediate cash transfer without the stipulations and conditions usually attached to the credit card holder.

Applying for a cash advance loan in a company that specializes in cash advances will not require looking at your credit history. There is no reporting to a business bureau if you are faithful in settling your accounts. The significance of this is that your credit card will be treated as a separate action. With credit reported to a bureau, inquiries into your credit report can increase the interest rates and mortgage rates of your credit card. 

This is one of the advantages of getting credit with the payday service providers although this can differ from one company to another.  It will be worth looking closely at the contract, as these terms are one of those that are usually stipulated. 

Another advantage of cash advance loans as provided by the payday loan companies is that you can shop around for many agencies. You can choose from among them and get a reply from your application in minutes. The borrower can also get his cash advance loan check on the same day that his loan is approved.

With credit card cash advance the normal stipulations are:

• There is waiting time when activating the cash advance feature that also includes waiting time for a pin number.

• An additional fee is assessed to your account during your first cash advance.

• When the cash advance is not paid in full during a prescribed period, additional fees are assessed to your credit including additional interest.

Every bank can also treat every credit card differently. If you are intending to use your credit card for a cash advance, it is usually smart to call up your issuing bank first to know the consequences if you choose to use your credit card cash advance to finance your commitments.

All said, it is better to apply for a cash advance loan store if you are only financing an interim financial requirement. It is fast, and it is efficient in providing immediate needs without having to undergo and fulfill all the other requirements that fixed credit lines require. It also allows you to choose and compare the cash advance loan rates from many different financing companies even from your home.

However, should the need to finance be for bigger and more expensive items that would require a spread of payment for several months, a payday cash advance company loan may not be the answer. It will be wise for these kinds of transactions to be done with banks or though your credit cards.

Dean Shainin is a well known writer, webmaster, developer and internet marketing expert of http://www.EndlessIncomeForLife.com a state of the art marketing system designed to build five long-term residual income streams.