What is a Debit Card Cash Advance?
You may have come across the term “credit card cash advance” and wondered if you can access this type of financial solution with your debit card.
The short answer is no, you can’t take out a cash advance with a debit card like you can with a credit card. But debit cards can play a role in how you receive and pay for a Cash Advance loan.
Can I use a debit card to get a Cash Advance?
While debit cards can be used to withdraw cash, they can only withdraw from accounts that already have money in them. If you’re facing unexpected bills or an emergency expense before payday and you don’t have money in your bank account, you can’t simply use your debit card to withdraw money “in advance” of your paycheck.
But this doesn’t mean you can’t use your debit card to access the money you borrow from a Cash Advance loan. We’ll explain more as we discuss the different types of cash advances available.
What are Cash Advances and how do they work?
There are two kinds of financial products that are considered cash advances, but they are very different from one another.
Credit card cash advance
A “credit card cash advance” is when you borrow against the available credit on your credit card, usually through an ATM or at a physical bank branch.
For example, let’s say you have a $2,000 credit limit. If your current credit card balance is $1,500, you can theoretically take out a $500 cash advance at an ATM (if your credit card company allows cash advances). Simply insert your credit card into the ATM and select the “cash advance” or “cash withdrawal” option.
After borrowing money against your credit card limit, you then repay what you owe as part of your monthly credit card payments. Keep in mind, however, that most credit card companies charge extra fees for credit card cash advances.
Cash Advance loan
The other type of “cash advance” is a small-dollar loan known as a Cash Advance or Payday Loan. This loan is designed to be repaid in full on your next payday, hence the name, and availability is determined by your income and your state’s loan regulations.
Since a payday lender will often deposit your Cash Advance into a bank account that you can access with a debit card, these loans are also sometimes referred to as debit card loans. Essentially, you can use your debit card to withdraw the funds from your bank account, which is why some people may equate a Cash Advance loan with a “debit card cash advance.”
How do I get a Cash Advance?
You first need a credit card to receive a credit card cash advance. If you have poor or bad credit, it may be challenging to be approved by some credit card companies — or they may only approve you for a small credit limit.
Cash Advance loans can be easier to get when you don’t have good credit. While a lender may run a soft credit check, they’ll also look at your employment history and the amount of money you earn when making their loan approval decision.
Do I need a debit card to get a Cash Advance?
It depends on the lender. Some lenders require you to have a debit card linked to an active checking or savings account. This account is where they’ll direct deposit the funds from your Cash Advance loan. Other lenders that don’t require a bank account may provide your loan funds via a prepaid debit card, check, or cash.
Benefits of a Cash Advance
There are notable advantages that can make Cash Advance loans a good option when you need money quickly.
Applying for an online Cash Advance from your computer or mobile device means you can apply any time of day when it’s convenient for you.
It doesn’t take long to fill out an application, and you’ll typically know within minutes if you’ve been approved for your loan. Once approved, you’ll receive your money quickly, sometimes as soon as the same day you apply.
Flexible credit requirements
Because many Cash Advance lenders have lenient credit requirements, borrowers of all credit types can apply. This makes a Cash Advance a good option if you have bad credit but need money for emergency expenses.
What can I use a Cash Advance for?
There are no restrictions on how you use your Cash Advance loan. For example, you can pay for things like:
- Car repairs
- Home repairs
- Medical bills
- Vet bills
- Appliance repairs or replacements
- Utility bills
In some cases, the fees and interest associated with a Cash Advance loan may be less than any past-due charges or late fees charged by your landlord, utility company, or credit card company.
How do I apply for a Cash Advance loan?
The first step of any loan process is to figure out how much money you need. Remember, you don’t want to borrow more than you can afford to repay on your next payday. Once you know the amount you need, take the following steps:
1. Research lenders
Compare Cash Advance lenders online to see what options are available in your area. Check their Google reviews and look for them on Trustpilot to see how customers have rated them. Pay attention to lenders that have lots of 4- and 5-star ratings and positive customer reviews.
Once you’ve identified some lenders you feel good about, compare their Cash Advance loan rates and terms to see which best fits your budget and needs.
2. Gather your documents
When applying for a Cash Advance, you may need to provide the following:
- Driver’s license or other government-issued ID
- Recent pay stubs or similar proof of income
- Routing and account numbers for an active checking account
Be sure to have these items on hand as you fill out your loan application.
3. Apply for a Cash Advance
Visit the lender in person or navigate to their website to complete your Cash Advance application. Before submitting it, take a moment to look over your information to make sure everything is correct, as any mistake could mean a delay in the loan process.
4. Wait for the approval decision
Once you submit your loan application, you should know quickly if you’ve been approved. Many lenders will let you know within minutes, while others may take up to a few hours. At Advance America, we offer instant approval decisions.
5. Receive your Cash Advance
If approved, you’ll typically receive your money that same day or on the morning of the next business day. If the money is deposited into an account linked to your debit card, you can start using your debit card to access that money as soon as the funds are available.
How do I know if a Cash Advance loan is right for me?
A Cash Advance loan can be a good option when you need money fast or don’t have the credit score required for other kinds of loans. If you know you’ll be able to pay your loan in full on your next payday, a Cash Advance might be a means to pay for those unexpected expenses we all face from time to time.
Apply for a Cash Advance loan at Advance America
It happens – an unexpected expense comes your way, and you need extra cash to deal with it quickly. That’s where Advance America can help!
We work with borrowers from all credit backgrounds to offer fast loan services that can put you back on track in no time. Let us help find a financial solution that works for you. Apply now.