Payday Loans vs Cash Advances: Understanding the Difference Between a Payday Loan and Cash Advance

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When would I need a payday loan? When would I need a cash advance?

We see advertisements for fast cash and payday loans all the time. Some businesses will advertise, “Get a cash advance here!” or “Payday lending for you over here!” We search for the “best payday lenders near me” and the “best cash advance near me”. These terms are sometimes used interchangeably, but are they the same thing? Today we will learn what the difference is between a cash advance and a payday loan. We will also answer the question: which one is right for me?

Payday Loans vs. Cash Advances

There is a reason that online payday loans and cash advances are so often synonymous. They are similar to each other in the services that they provide. They provide quick cash when you need it. They are both fast cash options that do not require customers to jump through a bunch of hoops. Payday loans and cash advances are both two of the most popular types of short-term loans. When thinking of short-term lending, most customers think of these two types. Both were created for someone who is looking for fast cash and is in a bind. Both loans also have higher interest than the average bank loan. Both types of loans can be helpful for people with a bad credit score. There are cash advances and payday loans that have no hard credit check. 

Payday Loans

They are called single-pay “payday loans” because they were originally desThey are called online “payday loans” because they were originally designed to be short-term solutions between pay dates. These are used by consumers who do not have credit cards, or who need more than their credit limit allows. Here is a rundown of how the payday loan process works. Borrowers give basic information, such as, personal information, bank information and proof of verifiable income. Loans are designed to be fast, easy, and self-explanatory. It is all about convenience. The application for most payday loans can be completed online in under 20 minutes. The time from accepted application to having money in your account can be as soon as the same day or even the next business day. Average loan amounts range from a few hundred to a few thousand dollars. State laws regulating payday loans vary from state to state.

Here is some helpful advice when applying for a payday loan. Keep an eye on the cut-off time to get your loan as soon as possible. Be aware of loan limits in your state. Instead of having to pass a credit check and pay interest, payday loan providers charge set fees. These fees cover the cost of service. Some companies provide promotional discounts on fees. You could try following their social media or asking their customer service team if there are any available discounts.

If you need a payday loan, you can apply at You can also follow us on social media to keep an eye out for potential discounts and offers. Facebook Twitter Instagram YouTube

Cash Advances

Another way to get money fast when you are in a bind is through cash advances. Cash advances are most often offered through credit card providers. They are usually separate from your credit limit. They can act like any other purchase. However, in this case, you are purchasing cash. Unlike payday loans, you need to have a credit card or some form of open credit. You cannot expect to get approved for a cash advance if you do not already have a line of credit open with that company. It is important to remember that cash advances are usually separate from your credit limit. The repayment terms might be the same, or they might differ. Some companies will charge a fee. Some companies will charge a higher interest on cash advances than their credit card terms. Be sure to read the fine print before signing up for a cash advance.

Another detail to pay attention to is the order in which your loan is repaid. Be cautious with cash advances. Some companies require you to pay off your other credit balances with them first before making payment towards your cash advance. For some companies, cash advances are a way to capture customers into an even higher-interest loan for a longer period of time. Be sure to manage your cash advance appropriately in order to avoid harming your credit score. Again, some companies generally charge a flat fee, but some do charge interest instead. High interest over time can become costly. Do your research or ask a customer service advocate if you are unsure about any part of the process.

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Did anything in this article surprise you? Comment below.

Net Pay Advance is a licensed loan provider, locally owned and operated in Wichita, Kansas. Our No. 1 priority is helping you, the customer, by providing access to the cash you need and helping support financial independence goals with valuable, informational, and entertaining content. Stay up-to-date on our posts by following the Net Pay Advance Facebook, Instagram, and Twitter pages. Our organization is committed to transparency; learn more about our authors and editorial policy. The information provided within this blog is for educational purposes only and should not be construed as financial or legal advice. Please contact us if you have any questions.

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