Frequently Asked Questions
1. What is a cash advance?
A cash advance is a small loan for a short time period – usually until your next payday. The cost of a $100 cash advance is around half the cost of a bank dishonour fee. It’s also less than paying late fees for you rent and it’s certainly more convenient than wasting your valuable time waiting in bank queues. Certainly the Money Boss doesn’t have time for that and I doubt you do.
2. How much money can I borrow?
It depends on the lender, but it is usually small sums up to $1000.
3. How can a cash advance help me?
How good was it as a teen, when your parents helped you out with a bit of cash when things were tight? Well now you’re a bit older your parents may not be quite as willing to hand over the dough whenever you need it. This is where a cash advance can help you out. When you need a little extra to get you through to your next pay day – there is an alternative to being totally broke.
4. Why get a cash advance instead of a credit card or personal loan?
The main reason is staying in control – most people don’t trust themselves with a credit card. It’s too easy to put off repaying a credit card and let the balance grow and grow.
Personal loans are good for long-term borrowing or larger amounts. If you only need a few hundred dollars, it’s not worth borrowing the extra money needed for a minimum loan amount and paying it for the next 3 years. You’ll have forgotten what you needed the money for!
With cash advances, you have to repay on a set date, so it disciplines you to stay on top of it.
| Comparison | Cash advance | Credit card/personal loan |
| Ease of application | Little paperwork, usually online, faster approval/denial time. | Lengthy documents and can take up to several days to be approved/denied. |
| Loan amount | Small amounts only. | Ability to lend thousands. |
| Repayments | Full repayment is due within a short time period, ensuring you stay disciplined. | It’s easy to pay interest only and avoid paying off the principal amount. Personal loan repayments run for years, which is a risk in itself. |
| Length of loan | Repaid in full or part on your next pay day. | Credit cards don’t have a time limit. Personal loans usually go on for a few years. |
| Costs | Higher interest, but lower overall cost. | Lower interest but due to the long-term commitment, overall cost is usually higher. |
5. How much paperwork is involved?
Again, it depends on the lender. Some lenders will just require name, address, income and bank details while other lenders will require a sit down meeting and your signature on a number of documents.
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