Money isn’t always readily available, but expenses can’t wait forever. Whether an unexpected event has you scrambling to make up the difference or you’re short a few hundred dollars on a bill, a cash advance can help cover the costs almost instantly.
While there are risks that come with a cash advance, careful planning can help you avoid them. If you’re not sure when to get a cash advance, here are a few situations where you might need one.
1. Emergency Expenses
While you can budget for most of your expenses, surprises happen. Whether you need to replace an appliance quickly or purchase groceries, a cash advance can get you access to the money you need that same day. It’s a great way to make ends meet on short notice.
Others may warn you that using a cash advance to cover emergency expenses is a bad idea, but they’re wrong. If you have a solid plan to repay your US Cash Advance, you can minimize the risk and walk away with the funds you need right when you need them.
For example, if your car breaks down and you need it repaired quickly to get to work, a cash advance can provide the funds to get it fixed right away. Without access to fast cash, you may have to scrape together rides from friends or public transportation while you wait for your next paycheck. This can cause major inconveniences and possibly even result in lost wages if you can’t get to work reliably.
Data shows that nearly half of all cash advances are used to handle surprise expenses. The most common emergencies that prompt people to seek cash advances are auto repairs, medical bills, and major home or appliance repairs.
|Percentage of cash advances used for emergency expenses||46%|
|Most common emergency expenses:|
|– Auto repairs||18%|
|– Medical bills||16%|
|– Major home/appliance repairs||12%|
With an emergency cash advance, you can get your car repaired pronto and avoid disruptions to your daily routine. As long as you plan to repay it responsibly over time, it’s a perfectly viable solution.
2. Unexpected Bills
Maybe you lost track of time during a hectic month, or you’ve just moved, and your bills are due sooner than expected. A cash advance can help cover the cost of the bill so you don’t get hit with late fees or take a hit on your credit.
For instance, say you switched utility companies when you moved to a new apartment but forgot to update the billing date. If your electric bill comes due before your first paycheck at your new job, a cash advance can tide you over. Otherwise, you may face power shutoffs or expensive late payment penalties.
Statistics reveal the precarious nature of household budgets these days. A staggering 78% of Americans live paycheck to paycheck, leaving little wiggle room when bills come due unexpectedly. Cash advances help bridge the gap.
|Percentage of Americans living paycheck to paycheck||78%|
|Average monthly overdraft fees per overdrafter||$35|
|Increase in credit score after 12 months of on-time payments||Up to 100 points|
Medical bills can also take a while to appear, and maybe there’s one more you have to pay that wasn’t accounted for when you made the budget for the week. A cash advance will bridge the gap between the due date and payday easily. You can get the funds transferred to your account right away and avoid hefty late fees or collection calls.
3. Home Improvements
Are you in need of additional funds to renovate your home? A cash advance can easily help cover the expenses of updating outdated appliances, cabinetry, or other decor.
If you run into issues with plumbing or electricity, a cash advance can secure the help you need to get the job done quickly. If you let the problem fester, it can easily get out of control and create a spiral of misfortune and more expenses to get back on track.
Dollar for dollar, home improvements generate excellent returns. The numbers speak for themselves: bathroom remodels recoup 60% of costs, while kitchen upgrades increase home values by 4-5%. Cash advances provide accessible capital to start projects that pay off in the long run.
|Average bathroom remodel cost||$6,000|
|Increase in home value from renovated kitchen||4-5%|
|Return on investment from renovated bathroom||60%|
For example, say your water heater springs a leak and needs to be replaced immediately. Without access to fast cash, you may have to go days or weeks with limited hot water access while you scrimp and save for a new one. But with a cash advance, you can have a plumber install a replacement right away before any water damage sets in.
Or perhaps you want to renovate your kitchen with new floors, countertops, and appliances to increase your home’s value. A cash advance provides upfront capital so you can hire contractors and purchase materials now instead of putting projects off indefinitely.
With the right plan to pay it back, you’ll find yourself fixing up your home in no time. Payday doesn’t always come around soon enough, so it’s a good idea to have a backup plan when you need money fast. A cash advance can be an easy and useful tool to get through the month.
4. Get Access To Funds
No matter what life throws at you, there’s always a need for additional money in a short time frame. Whether you forgot to transfer money the day before, the banks are closed, or you overdrafted one account by mistake, a cash advance can help fix the problem before it escalates.
Having access to your money on short notice can help prevent more fees and penalties with other institutions. Rather than risk your expenses soaring due to unplanned expenses and fees you don’t have cash on hand for, get a cash advance and make a plan to pay it back.
Over a quarter of 25-34-year-olds overdrew their accounts last year, incurring an average $30 fee each time. Cash advances fill gaps, providing instant weekend and after-hours access.
|% of 25-34 year olds who overdrew accounts in past 12 months||27%|
|Average overdraft fee||$30|
|Maximum daily ATM withdrawal limit||$500|
For instance, say you need to pay a friend back for concert tickets by Friday but don’t get paid until Monday. Taking out a small, short-term cash advance allows you to reimburse them on time and avoid hurting your friendship or credit. It’s a simple solution for getting immediate access to funds in a pinch.
Or maybe you accidentally overdrew your checking account and could incur hefty overdraft fees. A cash advance lets you deposit money back into your account right away before those fees stack up. As long as you pay back the advance responsibly, you can avoid unnecessary penalties.
Final Thoughts On Cash Advances
The bottom line is that a cash advance is the fastest way to access money on short notice, especially when emergencies arrive and you can’t wait one to two business days to get the funds you need.
|Percentage of Americans who have used a cash advance service||12%|
|Average cash advance amount||$375|
|Cash advance usage by income level:|
|– Under $15,000||19%|
|– Over $35,000||7%|
With an immediate cash advance, you can access your money sooner and prevent disaster. From emergencies to home improvements, getting money when needed will smooth over any complications and set you up for success.
Careful planning is key, however. Be sure only to borrow what you need, understand any fees involved, and have a solid repayment plan in place. As long as you use cash advances occasionally and responsibly, they can be an invaluable financial tool in a pinch.