5 Ways to Use a Cash Advance

A cash advance can be a great way to access funds quickly. Whether you need it for an emergency, to cover an unexpected expense, or to take advantage of a great deal, it can be a great asset. However, it’s essential to explore how you can use such a service and how to do so safely and responsibly. In this article, you can look at five ways to use a cash advance and offer tips on ensuring you're getting the most out of it. So read on if you're looking for a convenient way to access funds.

5 Ways to Use a Cash Advance

A cash advance is a short-term loan. It is a form of unsecured loan, meaning you don’t need to offer any of your assets (such as a car) as security to be granted a loan. The amount of money available through a cash advance is generally limited, and the repayment period is usually quite short.

Four Different Types of Cash Advance

Before you learn about the uses of a cash advance, you must first know about its different types.

1. Wage advances

These are short-term loans that have the repayments due on your next payday. They are the low-fee alternative, typically with a 5% flat fee on the amount lent. E.g., Fees of $5 on a $100 loan.

Wage advances usually do not have any late fees or penalties as they are created to favour those who struggle to make ends meet. What’s impressive about this service is that you will get the money you’re trying to borrow immediately. Get the amount you need instantly as soon as you meet the criteria and finish signing up.

Every transaction is done digitally so you do not have to worry about travelling or the long waiting lines just to get the money.

Wage advance apps in Australia include MyPayFast with a $750 credit limit, PressPay with $1,000, and WagePay, MyPayFast, and BeforePay having a $2,000 limit. 

On the other hand, there is also Wagetap with the same limit of $2,000, but is the only one that offers a bill split option where you can split your repayments into three or four equal repayments based on the amount of money you want to borrow. This offers a convenient way for you to pay without it being too heavy.

2. Payday loans

These are short-term loans that typically have more extended repayment periods than wage advances. They are a higher-cost option than wage advances and are best used for emergency expenses. Payday loans typically have a 20% establishment fee plus a 4% flat monthly fee and often have late fees and charges.

3. Credit card cash advances

These are advances that you can take out against your credit card limit. They are typically swift and convenient but also have high-interest rates and fees. A credit card company lends you money and charges your account but it will cost you since cash advances generally have a transaction fee and a higher annual percentage rate. 

You should keep in mind that credit card cash advances are a very expensive loan. This type of service can quickly put you deeper into debt without you even realising it.

4. Bank loans

These are longer-term loans that come with lower interest rates and more flexibility. They are typically used for larger expenses like home repairs or car purchases.

Common Uses of Cash Advance

After looking at the different types of cash advances, you should also know how to use them. Knowing its ins and outs will help you utilise its advantages and will be able to help you better. Here are five common uses of cash advances:

1. Bill Payment Help

Due to people's various needs, there are numerous bills everyone needs to worry about every month. It can take a lot of work to keep track of them and make sure that your budget is enough. If you have any bills due soon, a wage advance can assist you in paying them upfront so you don’t have to worry about late fees.

There are numerous bill payments that cash advances can help you pay for. These include but are not limited to electricity, gas, water, phone, TV, and internet bills. A cash advance can be really helpful while trying to make ends meet and cater to these different responsibilities. All you have to do is sign up, meet the criteria, get approved, and get your cash instantly.

Emergencies

In various emergencies, a cash advance can be a lifesaver. It can provide you with the funds you need to cover the cost of medical bills, medications, and other necessary costs. Worrying about a loved one is already hard enough, so eliminating the burden of looking for money to pay these expenses can be a relief. These can also include other necessities like dental needs.

2. Council Rates

Council rates are essential in establishing the community you are living in which is used by your government to build infrastructures and other utilities that can help you live comfortably. However, due to different responsibilities, sometimes you need help in paying for them. A cash advance app can help pay for that as well.

3. Groceries

People need to visit the supermarket frequently because the needs in the household are endless which include food, toiletries, and other necessities. Sometimes you just list everything on a piece of paper and you do not realise how the prices just stack up each other.

It is good to have a nice fallback like a cash advance that can help you pay for groceries the minute you need it. Access the money you need whenever you need it right at the palm of your hand because cash advance services are done digitally.

4. Childcare

Supporting a child is expensive, nobody argues with that. They have both wants and needs that you need to provide as their parent or guardian. These include but are not limited to their education, medical, and other basic needs. Parents usually have a hard time budgeting their income because of this. 

Good thing there are cash advance apps that can help cover childcare expenses temporarily by giving you the option to borrow money whenever you need it. Support your child the way you want by utilising the features of a cash advance.

5. Car Repairs

Car repairs can be a huge inconvenience, and public transportation is out of the options sometimes. Having your own mode of transportation is important. You use it to travel to work, shop for groceries, and, most importantly, get to emergencies. A cash advance can be a great way to get the money you need to cover the cost of repairs and avoid the hassle of dealing with inconveniences. 

Should I Get a Wage Advance?

Whether or not you should get a wage advance depends on your situation. If you are in a financial emergency and need the funds quickly, then a wage advance can be a great option. However, it is important to make sure you understand the terms of the loan and that you can pay it back in a reasonable amount of time. 

Always remember to understand the different types of cash advances and how they can be used. Ultimately, the decision whether you should use it or not is up to you. Make sure to have your priorities in check in order to not be short on cash in the first place.

Get Instant Cash With Wagetap and Take Control of Your Finances

Wagetap is a pay advance app designed to help you when you are in need of instant cash. There are plenty of ways to use a cash advance, and Wagetap ticks all the boxes. Whether for a medical emergency, an unexpected car repair or any bills due, Wagetap has you covered.

App Store

For additional help, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen, and Wagetap can help you handle life's unexpected expenses.

For additional help in improving your spending habits, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen and Wagetap can help you handle life's unexpected expenses.