This issue will be debated as long as the cash advance industry exists. Advocates for short term lending argue that it is a necessity for people that do not have other means of financing. On the opposite spectrum, advocates for long term loans argue that cash advance companies are basically legal loan sharks. In the end, it comes down to personal choice. Have you ever been in the position of needing cash quickly? It can be stressful. A cash advance relieves that stress for many people.

Short Term Cash Advance:

Pros-

No credit checks

One time payment

Minimal paperwork

Easy qualifying with stable employment

Money available the next day

Cons-

Higher interest rates than traditional loans

If you’re poor at budgeting, it can be difficult to repay the balance

Your timely repayment will not be reflected on your credit report

Cash advance offers quick money to people with urgent financial issues. Using a short term loan for other matters, such as making expensive purchases, can compound your financial problems. A cash advance can be a good solution when you encounter a financial emergency and when you know you will be able to repay the loan on your next pay date. It boils down to being responsible about your finances. Know what you can and can’t afford. When you find yourself in a tight financial position and in need of a cash advance, be sure to budget for the repayment so you can get back in track as quickly as possible.

Long Term Loans:

Pros-

Lower interest than a cash advance loan

The borrowed amount is higher

If paid on time, it will reflect positively on credit report

Cons-

Long term monthly payments

Credit check will be required

Loads of paperwork

Money is not generally available right away

Will negatively affect your credit if paid late

Long term loans are a great way to fund major projects or purchase big ticket items. When you need to do home improvements or want to buy a new car, a long term loan is going to be the best option. If you have good credit, your interest rate will definitely be lower than a cash advance. Realistically, however, a long term loan will not help you in a pinch. Long term loans can be rather involved and they can take weeks to finalize. It will not help when the electric bill is due at the end of the week.

Long term loans and short term loans are used for two totally different situations. People that use cash advance services are happy they’re available. They are usually met with a crucial financial problem and a cash advance offers a timely resolution. People who complain about them generally don’t have to use them. In the end, the decision is made by you, the consumer. You must decide if paying a higher fee is worth getting the fast cash you need.

About the Author: Michael Tagnani is an SEO expert, Internet marketing enthusiast, and an integral part of the Spotya team. Spotya is devoted to providing their customers with excellent service, valuable resources, and the lowest fees on the planet. Find out why we're different than other online cash advance companies - visit us at http://www.spotya.com