Cash Advance

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Definition of 'Cash Advance'

A cash advance is a short-term loan that is typically repaid in full within a few weeks or months. Cash advances are often used to cover unexpected expenses, such as medical bills or car repairs. However, they can be expensive, and it is important to understand the terms of the loan before you take one out.

There are a few things to keep in mind when considering a cash advance. First, you will need to have good credit in order to qualify for a loan. Second, the interest rates on cash advances are typically very high, so you will need to be able to repay the loan quickly. Third, cash advances often come with fees, such as a transaction fee or a monthly fee.

If you do decide to take out a cash advance, be sure to read the terms of the loan carefully before you sign anything. Make sure you understand how much the loan will cost you, and how long you have to repay it. You should also make sure that you can afford to repay the loan on time.

If you are considering a cash advance, there are a few other options that you may want to consider. You could try to borrow money from a friend or family member, or you could apply for a personal loan from a bank or credit union. Personal loans typically have lower interest rates than cash advances, and they may offer more flexible repayment terms.

Before you decide on a loan, be sure to compare your options carefully. Make sure you understand the terms of each loan, and choose the one that is best for your needs.

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