What are the Disadvantages of Using Cash Advance?

[Suba]

Cash advance is a financial service, be it a bank, loan app, credit card company, etc. that offers loan funds so that customers can withdraw money from credit cards. Although cash advance has advantages such as fast and easy withdrawals, it also has several disadvantages such as:
1. Customers will be charged various fees such as service fees, high withdrawal fees and higher interest rates (APR) than bank loans.
2. Worsens credit scores if there is a delay in payment.

 

[Trush Jodie]

The real advantage of cash advance is that it helps to settle immediate financial needs with the urgency or requires.

 

[eLdavis]

You will end up being in more debts if you are not able to pay what you owe in the future. This is one reason why I don't take loans.

 

[Suba]

Behind the convenience there will always be hidden difficulties, as is the case with Cash Advance, it seems easy to withdraw cash, but if we are not careful, or think twice, we can get trapped in ongoing debt.

 

[Nomad]

One of the major issue with advance payment is you tend to overspend your money or you never work hard for the work as you have already received payment

 

[Springtime]

I do not like getting cash advance or loans, except using credit card for cash back. I do not want to get into debt.

 

[Stardom22]

Cash advances are likely to be loans and they really charge higher interest rates. The other disadvantage is that it can it can result into financial constraints as any money credited to the account is debited to pay off the advance loan.

 

[Augusta]

Yes I'm using Cash advance and I'm enjoying it. The charge for 10,000 loan is just 850 it is not even up to a thousand naira

 

[Stardom22]

Advance cash is just like any other debt. Debts are not really good because they put people in more financial problems

 

[Starmix]

During the payday, the employee will no longer have sufficient money, so he will file a cash advance again which is crucial. The employee must not apply a cash advance.

 

[King Belieal]

I don't like cash advance because you would never get the exact amount you requested for but you would pay interest for that amount.

 

[Starmix]

I think not all companies allow a cash advance. It might done only by small companies or businesses. I have not heard it at my work place.