Scroll Top
19th Ave New York, NY 95822, USA

What Is An Instant Cash Advance? | Explained


When you are in a financial emergency, your next payday may not be soon enough to cover the costs you need it to. In cases like these, getting an instant cash advance loan in the USA can help see you through a tough financial emergency until such time you receive your paycheck and can get back to normal.

For urgent unexpected payments that may arise, you may need to borrow money today and instantly rather than tomorrow or in a few days. When you need instant funds, a short term loan is usually one of the only options. 

An instant cash advance is a type of short-term loan which can be used to pay off immediate expenses rather than waiting for your next pay cheque. Here we explore why you might use an instant cash advance, how they work, and their potential benefits and drawbacks.

What Is An Instant Cash Advance?

An instant cash advance is a type of short-term loan which can provide a borrower with instant cash, usually on the same day as applying for the loan. 

These loans provide emergency assistance for anyone in need of quick cash, for example when their car breaks down or there is an urgent home repair that needs attention. Instant cash advances typically work with instant approval so that funds can be transferred into your bank account within hours, if not minutes.

When you apply for an instant cash advance online, you will typically receive the decision from the lender on your screen almost immediately, informing you whether or not you have been accepted for the loan you need.

Why Might You Need an Instant Cash Advance?

Instant cash advances are useful for anyone who needs to cover an unexpected expense such as a burst pipe, a broken down car or an emergency medical bill. They can also be used by people who are unable to pay their bills on time for whatever reason.

They are not too dissimilar to payday loans, which are used to get borrowers through a financial emergency and when their salary between paydays doesn’t quite stretch. Much like payday loans, when it comes to a cash advance, the borrower may for example get a $500 loan, which is funded on the same day. The loan is then paid back in a matter of a few weeks or a month, plus interest, when the borrower gets paid by their employer.

Getting an instant cash advance loan can be very helpful. If used incorrectly however, it can add to your financial pressures

What Are The Benefits of an Instant Cash Advance?

One of the best things about an instant cash advance from a borrower’s perspective is that it provides them with instant cash. This means that rather than waiting for a few days or weeks in order to get the money they need in their bank account, a borrower can literally receive an instant cash advance in their checking account within hours, or in some cases, minutes.

Rather than wait for their next paycheck, or even the long process of waiting to be approved by a bank for a loan, instant cash advances get the funds into their account as soon as is possible and, upon approval, as quickly as the lender can provide; whether a borrow needs to borrow $100 or borrow $2500 or even more.

They are one of the easiest forms of funding to qualify for as very often, they do not require a hard credit search to be carried out for approval. 

This means that even borrowers with no credit history who may have been applying for no credit check loans and bad credit loans in the past, as well as those with a poor credit score can qualify for instant cash advance and start to get their finances back on track. 

As long as the instant cash advance is paid back on time, there is no reason for the instant cash advance to appear on the borrower’s credit report.

Instant cash advances are a form of unsecured short-term lending meaning there is no need to put down collateral and no risk of losing an item of value.

Unlike some loans, there is no need to justify why you need the funds and there are no restrictions for how you can use the money. 

What Are The Disadvantages of Cash Advance Loans?

Although instant cash advances can be a good way of ensuring cash in the short-term, they may cause long-term financial stress if used incorrectly. Due to their unsecured nature, they usually incur higher-than-normal interest rates and additional fees. 

This could soon become a financial burden as you could encounter sky-high interest rates which you will need to pay back. If you are happy to wait a little longer, it might be worth applying for a loan or line of credit which would incur lower interest rates and reduce how much you need to pay back in the long run.

In addition, if speed is of the utmost importance, it is worth noting that not all cash advances are instant and will depend on the lender. In some cases, it might take up to 24 hours, if not longer, to receive the cash advance.

Although instant cash advances are known for being easily accessible, it is not guaranteed that you will qualify. Even if they do not carry out a strict credit check, some lenders will want to look at specific criteria such as income or credit score. Depending on the lender, you may not qualify for the cash advance.