When you are short of money with many needs, you can easily get stressed. This can lead you to apply for a cash advance. A cash advance is a type of loan that does not require checking your credit history, and you get the funds immediately.
In short, it is a type of loan where you get money without applying for a formal loan. Cash advances are usually short-term, and you pay your fees and interest in relation to the period of repayment. It is not that hard to acquire a cash advance.
There are various types of cash advances; credit card cash advances, merchant cash advances, and payday loans. Most people in Singapore are afraid to consider this solution because they don’t know how it works.
This article explains how cash advances work in Singapore. You need to look for a reputable company that offers the best cash advance rates.
1. Credit Card Cash Advance
A cash advance can be accessed through ATM and also writing the access check. When you take a credit card cash advance in Singapore, you pay interest based on the advance from the day the money is provided.
In addition to this, you also pay an upfront service fee. If you are looking for a cash advance, and you have a credit card, it means that you have already accessed the cash advance facility.
When you withdraw money using a credit card, the money you have withdrawn is the cash advance.
Steps When Applying For Credit Card Cash Advance
Step 1: Check your limit – The best way is by checking the billing statement done monthly. In this statement, there is always a place that indicates the limit. It is also advisable to call the customer care responsible for your credit card and ask about your limit
Step 2: Check the fees charged – It is important to check the fees so that you can opt for the issuer who will not drain you financially. The fees charged mostly is determined by the process you will use to get your cash. A good example is using a convenience check, which has lower fees than the use of an ATM
Step 3: Check the interest – Make sure to choose the one that does not overcharge the interest. Make sure you understand how interest works. In most cases, the interest rate charged on the cash advance is slightly higher than the interest rate charged during purchases.
Step 4: Know your PIN – The personal identification number helps you secure access to your card while using the ATM. If you have issues with your PIN, you must call your bank.
Step 5: Use the best credit card – In case you have many credit cards, you must compare the interest and fees charges so that you can choose the best credit card for a cash advance.
Step 6: Get your cash – You can get your cash from the ATM or visit the branch.
2. Merchant Cash Advance
A merchant cash advance is usually given out by the credit card provider, however, it is given out in partnership with the payment processor of credit and debit card sales. How you sell your products determines your repayment, since it does not charge the APR. If your sales increase, it means that you will have higher payments and vice versa is true.
This means that the lender works hand in hand with the provider so that he can examine how your business is working. A merchant’s cash advance can cope with your business, and it gives someone a chance to repay the cash per the business’s financial strength.
If you want to apply for a merchant cash advance in Singapore, you will need to have a business and make sure that the business uses cards to take payments done by customers.
This is because the lender can easily monitor the business cash flow and have good decisions at the end of the month in terms of repayments. This is a good solution for any type of business that does not have valuable assets. That makes the application process simple since less paperwork is needed and also no collateral is needed e.g. car.
3. Payday Loans
Payday loans are short-term loans, usually of a small amount, and the agreement of payment is when the borrower receives the next pay or wage. Here the borrower gives the right for electronic withdrawal, which directly goes to the lender upon the percent agreed. The good thing about this type of cash advance is that it can be secured by the pension amount or even social security.
Obtaining a payday loan means that you have to commit some cash for every amount borrowed. The fees are later added to the loan during the date of the transaction. If you apply for a payday loan, there are various ways you can pay, depending on the lender.
You can pay your loan through postdated check (this is done when applying), you can also pay online by use of the lender’s website, direct debit from your bank, and also a check on your next payday.
Steps In Obtaining Payday Loans
Step 1: Find the best lender – Lenders are all over and what you need to do is search online and get different types of them. Some lenders will allow the borrower to apply online. Have your research and choose the best lender that is legally allowed to operate
Step 2: Be cautious of scams – People are different and therefore, you will find lots of scammers online who will be a bad solution for your financial journey. It is always advisable not to consider a lender that offers you too much and also initiates a loan.
Step 3: Verify the license of the lender – When it comes to this point, it is advisable to involve your lawyer or financial advisor so that you can know if the lender is licensed or not
Step 4: Satisfy the lender’s conditions – There are requirements involved for every lender.
Step 5: Complete the process – Complete the application process and get the cash.
Conclusion
Getting a cash advance in Singapore is easy since it gives you a chance to apply for a loan that favors you. Credit card cash advance, merchants’ cash advance, and payday loans make the cash advance flexible, giving everyone a chance to apply the one that favors their financial muscle and capabilities. All the best as you get a cash advance in Singapore.