Does it ever make sense to take a cash advance?

While a cash advance can be quite expensive and do more financial harm than good, there are a few times when it might be a sensible option:

Alternatives to cash advances

What’s the difference between a cash advance and a payday loan?

Both a cash advance and payday loan are short-term, quick solutions to gaps in cash flow. The dollar amounts tend to be on the small side. Both are known to have high interest rates and fees.

The biggest difference between a cash advance and a payday loan is that you’ll need to go through an online payday lender or set foot inside a payday lender location to get a payday loan. While the interest rate of a cash advance is higher than your standard credit card APR, the interest rate on a payday loan is staggeringly high — we’re talking triple digits. It can be 400% or higher. You’re also required to pay back that money quickly, usually within two weeks.

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