Cash Advance Alternative - Is There an Alternative to Cash Advances?
Many people may find themselves in need of extra cash from time to time. Perhaps someone is in need of expanding their business or has experienced an unexpected
expense like home repairs. No matter the reason, there are several ways to obtain funds to meet these needs. Some choose to rely on cash advances. Cash advances
are usually pulled from a credit card. If an individual needs cash to pay for something, he or she can borrow that money from the available balance on their credit
card. With a cash advance, a person can receive money from a bank or ATM up to a certain specified limit. A typical limitation on credit card cash advances is that
the consumer can only withdraw up to a certain percentage of the available balance on the existing credit line. When an amount of cash is needed that exceeds the cash
advance limitation, consumers can consider applying for a personal line of credit instead.
What Is a Line of Credit?
If someone needs additional cash to fill a short-term financial need, they may choose to apply for a personal line of credit from Ladder Credit. A line of credit is a
form of unsecured lending, meaning borrowers do not have to put up any collateral. Lines of credit allow customers access to additional funding, which can be used at
their discretion to cover any expenses they may have. Like a credit card, a line of credit provides a revolving line of credit, which means that customers may utilize
up to the full amount of their credit line, and any payments made will increase their available balance which can be borrowed again. Borrowed funds from a line of credit
begin accruing interest on the day the money is withdrawn from the line of credit account, and customers can save money on interest by only requesting draws for the amount
needed to cover an expense, by paying their balance down as early as possible, and by paying more than the minimum balance due.
Repayment on a personal line of credit offers flexible options. A statement is delivered which will include account activity details – such as withdrawals, payments, interest
accrued, and any account fees. The statement will outline the minimum balance that will be due on the statement date – this is the minimum that the borrower is required to pay
to keep the line of credit current. A borrower may choose to pay more than their minimum balance, pay off their balance in full, and may even make payments ahead of the statement
How Does It Work?
The application process is quick and easy. The form requires the borrower’s contact information, Social Security number, and a few other details. After submitting the secure and
confidential online application that takes only a few minutes to complete, a representative will call the applicant to verify their information. During normal business hours, a
representative can be in contact within 15 minutes of application submission. Once approved and after loan documents are signed and returned, the line of credit will be set up and
approved funds available to withdraw.
When a customer wishes to access their funds, they can request a draw online at their convenience, or over the phone during normal business hours. Draw requests may be withdrawn from
the line of credit and deposited into the customer’s personal checking account as soon as the next business day. Once funds are in the customer’s checking account, they can be accessed
and used the same way any checking account funds are utilized – payments can be made using a debit card or check associated with the checking account, or funds can be withdrawn as cash
from the bank or from an ATM.
Why Choose a Line of Credit Over a Cash Advance?
In most cases, cash advances can’t provide all the funds necessary for an expense. Borrowers can only withdraw up to a certain percentage of their total credit card limit. With a line of
credit, borrowers may qualify for a credit line amount higher than their cash advance limit.
With Ladder Credit, applicants may qualify for lines of credit. To learn more and apply for a line of credit, contact us today!
The content on this site is for informational purposes only and is not professional financial advice. Ladder Credit does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.