Common Fears About Cash Lenders – Are They True?
If you need some emergency cash but you’re afraid of going to cash lenders, this article might help. A lot of people are afraid that going to a cash advance company is going to end up hurting them in some way. By and large these fears are unfounded.
Here are a few of the most common fears regarding cash lenders, along with an explanation of whether or not they’re true.
“Getting a Cash Advance Will Ruin My Credit”
In reality, the opposite is true. Getting a cash advance is one of the few loans that have an absolute zero impact on your credit rating.
If you work with cash lenders that don’t check your credit report, you won’t get penalized for the report check. Furthermore, almost no cash advance company reports loans to credit agencies. That means your credit report won’t even show that you got a cash advance.
The only time a cash advance will show up on your credit report is if you default. As long as you pay back the money, there will be zero impact on your credit score.
“Cash Advances Cost a Lot of Money”
They cost more money than credit cards, true. However, the key is to weigh the cost of the cash advance against the cost of not having the cash advance.
Cash lenders generally charge about $15 for every $100 that they lend you. If not having the money will cost you even more money, then getting an advance is a great deal.
For example, if you’re having trouble covering your rent and you’re getting charged a $10 a day late fee, you’re much better off with the cash advance than without.
Yes, advances cost money, but if you need the quick cash, it’s often worth the price.
“I’m Worried About Getting Harassing Phone Calls”
It’s true that if you’re late or delinquent on your payments, your lender can call you or have a debt collection agency call you.
However, getting around this is rather simple. If you send them a physical letter asking them to stop contacting you and you send the letter by trackable mail, they’re legally required to stop contacting you. If they don’t, you’re entitled to a fine.
If you do pay back the loan on time, there’s no worry about harassing phone calls at all.
In other words, even if you do get harassed, you can stop them from ever calling you again within about a week.
These are a few of the most common fears that come up when people think of getting a cash advance. Going to cash lenders really isn’t as scary as people think. Most of the time, the process goes smoothly without a hitch.