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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