Taking out a cash advance loan is an easy way to access a small amount of cash in the short term, even if you have a poor credit rating. However, cash advance loans can be risky. They are an expensive form of borrowing, and they are not designed to be used except in dire emergencies.
Most people who need to take out cash advance loans are those who are in the position where they can least afford the interest. Their credit ratings are poor, they have no savings, and they live from one payslip to the next. The interest rate on even a short term loan could cripple them – and if they do not budget carefully then they run the risk of defaulting on the loan, harming their credit ratings even more.
It is better to prepare in advance for an emergency – join a credit union and save a small amount each month, so that you have the option of borrowing through the credit union at a later date if an emergency strikes. Cut your outgoings as much as possible to build up a rainy-day fund, and use that for minor expenses. Never borrow for something like a party, gifts or a vacation. As depressing as it seems, missing out on the occasional celebration because of a lack of funds today is worthwhile if it secures you a good financial future.
If you do take out a cash advance loan, borrow only what you need, no more, and make sure that you pay it back on time. Missing a payment will see you hit with massive charges, and you might not be able to recover financially from that, at least not without taking a hit to your credit rating.