Long Term Loans vs. Short Term Cash Advances

May 15, 2008 · Filed Under cash advance 

This issue will be debated as long as the cash advance industry exists. Advocates for short term lending argue that it is a necessity for people that do not have other means of financing. On the opposite spectrum, advocates for long term loans argue that cash advance companies are loan sharks. Who do you believe? I believe it’s personal choice. Have you ever been in the position of needing cash quickly? It can be stressful. A cash advance relieves that stress for many people.

Short Term Cash Advance:

Pros-
No credit checks
One time payment
Minimal paperwork
Easy qualifying with stable employment
Money available the next day

Cons-
Higher interest rates than traditional loans
Loss of your next paycheck
Easy to become dependent on

Cash advance offers quick money to people for emergency purposes. Using this type of loan to make expensive purchases sets you up for trouble. In the event that you can afford the loan a cash advance can be a simple solution. It boils down to being responsible about your finances. Know what you can and can’t afford.

Long Term Loans:

Pros-
Lower interest than a cash advance loan
Amount of the loan is higher
Will show positive credit if paid on time

Cons-
Long term monthly payments
Credit check will be required
Loads of paperwork
Money is not available right away
Will negatively affect your credit if paid late

Long term loans are a great way to purchase a big ticket item. The interest rate will be low providing you have good credit. Realistically a long term loan will not help you in a pinch. This type of loan could take weeks to finalize. It will not help with the electric bill due at the end of the week.

Long and short term loans are used for two totally different situations. People that use cash advance services are happy they’re available. People who complain about them don’t have to get them. In the end the decision is made by you, the consumer. You must decide if paying a high fee is worth getting the fast cash you want.

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Comments

6 Responses to “Long Term Loans vs. Short Term Cash Advances”

  1. Matty on February 18th, 2009 8:35 pm

    Great Post! I am loving it. Will come back again – taking your feeds also.

  2. fha appraisal on July 23rd, 2009 8:03 pm

    I’m seldom to write a comment from a post that I read. But this article is really good so i can’t just leave this site without giving this comment.

  3. Ruby @ Getting Cash Fast on October 17th, 2009 10:36 pm

    Thank you! This is just what I was looking for. Keep up the great work!

  4. certified cash loans on November 16th, 2009 5:11 pm

    Very useful information
    I hope it will help me get a cash loan

  5. jenfer@payday loans on December 30th, 2009 5:09 am

    Long term loans is for long process but if you need cash suddenly then u have to apply for short term loans.Short term loans like payday loans or same day loans is cover your risk till your next payday.

  6. Fraser@instantdecisionloans.net on March 16th, 2010 4:53 am

    Great Post and a debate begins long term, short term lending.

    Who can agree, it boils done to the need more than the math for those that need to use credit or get loans fast.

    Borrowing money in reality is never right allegedly, I’ll avoid the unless, starting to not agree with myself now!

    The moral has to be, if you need to borrow money when the roof falls in on your life it’s better you can than cannot.

    Regards

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