Ways to Save on Cash Advances

When cash advances are used wisely, they provide an affordable way to get extra cash between paydays. Read on for suggestions on how to minimize the finance charges on your next payday advance.

1. Ask about finance charges before you choose a lender. Comparing the finance charges and interest rates of cash advances is one of the best ways to find an affordable loan. Before you choose your lender, ask for quotes on the finance charges you'll have to pay so you can select the lender with the cheapest fees. You don't want to be surprised by excessive APRs (annual percentage rates) after it's too late, so find out as much as you can beforehand.
2. Inquire about repeat customer programs. Some cash advance lenders have customer loyalty programs where they reward repeat borrowers with substantial discounts. Ask your payday advance lender if they have any such program, and if so, how you can sign up for it.
3. Keep the amount you borrow as small as possible. The finance charges on cash advances are much more likely to get out of hand if you overextended yourself with the amount of the loan. This can prove especially tempting when your lender approves you for larger paycheck advances than you really need. Before you even solicit quotes on your payday advance, sit down with a budget to figure out exactly what you need to make it until next payday. Hold yourself to borrowing no more than this amount.
4. Pay on the original due date. Many lenders offer extensions on the due dates for cash advances, but they tend to be quite costly (varies by lender). Extending the due date of your payday advance will result in additional finance charges, penalties, and fees that can add up faster than you will ever be able to repay them. Discipline yourself and budget accordingly so you can repay your advance on the original due date. If there is absolutely no way you can repay the loan in full on the original due date, pay as much of it back as you can before renewing the loan for more repayment time.
5. Use cash advances sparingly. No matter how reasonable the terms of your cash advance loans are, borrowing will eventually get prohibitively expensive if you over-rely on payday loans. Payday advances are designed for emergency, short-term financial needs; they are not a way to correct longstanding financial troubles. If you find yourself borrowing paycheck advances repeatedly, you are probably spending more than you earn, in which case you need to make cutbacks or figure out a way to bring in more income.