At some time or another you will have to use some sort of cash advance system, especially if you don’t have any credit cards or know someone you can borrow money from. While it may be alright to use cash advances every so often, becoming dependent on them to help you pay bills every month is not.

Cash advances can be extremely expensive because you are charged a fee in addition to the money you are borrowing. Overtime, these monthly fees could be used to make a down payment on a house or car. This is why it is important to learn the proper ways to use this type of loan service and to educate yourself about the advantages and disadvantages of cash advances.

Advantages of Cash Advances

Pay bills on time and avoid disruption of services. Some people consider having running water, and/or electricity more of a priority than being charged a service fee for obtaining a cash advance.

Avoid late fees or penalties. Oftentimes, cash advance fees are less expensive than the late fees or penalties put into effect by the credit card companies or other lenders.

Most businesses that offer cash advance services do not require an in depth credit check; therefore people with bad credit are more likely to get approved for cash advances.

You are charged a one time fee for borrowing the money. And you have a specific amount of time to pay back the cash advance, otherwise additional fees will apply.

Disadvantages of Cash Advances

You are charged a fee based on the amount of money you borrow or based on the percentage of money you borrow.

Overtime, cash advance fees can add up to quite a bit of money. If you take out a cash advance every single month for a year and the fee is $15 each month; that is $180 that you are throwing away. So you may want to see if there is any way you can save a little bit at a time to pay your bills every month.

If you don’t have the money in your account to pay back the cash advance, you will be charged an additional fee by the lender.

If you don’t have sufficient funds in your checking account, you will have to pay the fee associated with insufficient funds put into effect by your financial institution when your check bounces.

As you can see there are many advantages and disadvantages of cash advances. To find out if a cash advance is the right solution for your current financial situation, you should first weigh the pros and cons before you sign on the dotted line. While cash advances may be one of the easiest ways to obtain cash when you have bad credit or no credit history, they should be used sparingly and with caution. Make sure to read all the rules and stipulations associated with the cash advance loan before making an agreement to pay it back. By following these cash advance tips, you will know when you should use this type of loan and when you should consider other available options.


Cash advances are not entirely bad and not entirely good. However, they do make it possible for some people to make ends meet when times are tough. Learn some of the advantages and disadvantages of using cash advances and when you should consider using them to help pay bills.