WHAT IS A CASH ADVANCE?

A cash advance is another term to describe a payday loan. Both refer to a short-term, small-dollar loan, often used to cover unexpected expenses or to bridge a temporary gap between paydays. Cash advances are generally used to cover short-term financial needs and are not meant to be long-term solutions.

WHY DO PEOPLE USE CASH ADVANCES?

For many people, a cash advance is as an emergency source of short-term credit when faced with a bill payment or other money need. Using a cash advance instead of missing a payment commitment, borrowers can avoid fees, service charges and other negative penalties associated with a missed payment. When a cash advance is used to meet an unexpected cash need, such as a home or car repair, it can help resolve the issue immediately instead of having to wait until payday.