Best alternatives to cash advances

How many times have you been in a tight spot and run to the ATM to get a cash advance? This probably seems a good solution when you don't have cash, but there are better options you should check.

Getting cash advances from an ATM may seem a good option when you need cash but your wallet is empty. However, this isn't the best option. They aren't convenient, as they come with high fees and even interest rates.

So, next time you are in the need of cash, analyze these alternatives to cash advances!

  1. Get a fee-free overdraft: Usually, overdrafts count with fees just like cash advances. However, there are options that allow their eligible members to overdraft up to $100 free of charge.
  2. Advance on your paycheck: If you already know you are going to need some cash next week, you can ask your employer for an advance on your paycheck.
  3. Use a credit card: Although it's not a great method, it definitely is better than cash advances! Credit cards have lower fees and interest rates, so take them into account if you need some money.
  4. Pay the late fee: Before getting a cash advance for your rent, stop for a minute and calculate how much money would a late payment imply. Maybe your landlord can postpone your payment for a few days, with or without a fee. You shouldn't make this a habit, but it can help you once to avoid cash advances.
  5. Get a loan: If your credit score is decent, you can apply for a personal loan. Even though you will have to pay interest, it will be lower than the 24 percent you would have to pay with a cash advance.

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