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Don’t Use Credit Card for Cash Advance, Use This Instead

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People say, “Don’t use credit cards to get a cash advance?” Do you know why? Because many people do that and they later regret it. Sometimes, due to unavoidable reasons, people have no other choice than to take a credit card cash advance. But it comes at a cost. They have high APR and has additional charges.

So, what to do in such a situation?


The other best way to get a cash advance loan in Canada is to apply with an online loan lender. Let’s understand how a cash advance from a credit card is different from a cash advance of an online loan lender.



What is a cash advance?


A cash advance is a financial service many credit card companies and financial institutions offer to their customers. It allows a person to withdraw cash from ATMs using credit cards or get cash from the bank.

It is categorized as loans, and they are extremely easy to get. So, most of the time, it is taken during the time of an emergency. However, it has its own cons with it.


  • A cash advance is expensive:

The first fee you give is the Initial service fee, which can cost $10 straight or 5% of the total cash advance. Next, the interest rate ranges between 20% to 30%. Plus, there is no grace period, which means you are charged from the day you take a loan.


·        May affect credit score

Although it may affect your credit score but is not necessary, the cash advance you take is deducted from your credit limit. A backward shift can happen when you fail to pay the outstanding amount or over-utilize your credit card limit.


  • Limited cash advance:

Often, the cash advance credit limit is the same as your other credit limit. So, you can only get a few hundred dollars from a credit card cash advance.


Best way to get cash advance in Canada


The other easy way to receive a cash advance is by applying with an online loan lender. They are online financial institutions that provide instant cash advance loans in Canada. They instantly provide cash loans like credit card cash advances but do not have high APR.


How to get a cash advance from an online loan lender?


  • Online loan lenders have a website where you can find a loan application form. To apply for a cash advance, fill out this form and submit it.


  • The process is simple, and as every process is online, you do not need to visit any office. Moreover, cash advances from online loan lenders do not affect your credit score in any way.


  • The verification is done online, and once your application is approved, your loan is transferred to your account via e-transfer.


  • Choose the right tenure that will fit your budget and is easy on your everyday expenses and pay according to your needs.


So now you know where to look to get instant online loans in Canada. You can visit any online loan lender to check the process of getting a loan.

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