differences payday loan cash advance

Cash Advance vs. Payday Loan: Understanding The Differences

At first glance, cash advances and payday loans seem similar. But despite both offering easy access to cash with rapid repayment requirements, there are a few differences to be aware of before signing your name against any form of agreement.

In the following sections, our experts at Fast Payday Loans, Inc. go over both types of borrowing to uncover everything you need to know. By the end, you'll have a good idea of which one is better for you based on your circumstances and the loan characteristics.


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What Is A Cash Advance?

Cash advances, sometimes dubbed early payday advances or personal payday advances, generally come in the form of apps. These services are downloadable from your cellphone's app stores and offer you an advance that you'll need to repay on your next payday.

Said advances can range from a mere $25 to tide you over or a whopping $750 for larger emergencies, with higher amounts becoming available for repeat borrowers. As you may have seen, these apps tend to advertise zero fees or interest.

This isn't strictly true — they tend to charge a fee for expedited delivery. Standard delivery takes a few days, so they charge you to receive it immediately. Naturally, this isn't very helpful if you need the money now. Other personal payday advances charge a monthly fee and waive other costs.

What Is A Payday Loan?

Payday loans, on the other hand, are offered by reputable providers like us. They're short-term loans, allowing you to borrow between $100 and $1,000 to bridge the gap between paydays or fund an unexpected expense. Essentially, they're the traditional form of cash advance apps — said apps have taken a leaf from the payday loan book and used it to offer a similar digitized version with a few slight distinctions.

Comparing Cash Advances And Payday Loans

Speaking of the distinctions between the two, we've curated this handy table, allowing you to see both the similarities and differences at a glance. Let’s explore the similarities of these finance options:

  • No Perfect Credit Score Needed - Being denied for bad credit is often a worry for borrowers. Thankfully, you don't have to worry about that with either cash advances or payday loans.
  • Small Loans - Generally, you can only borrow a few hundred dollars, regardless of the loan type you go for.
  • Short Repayment Terms - Whether you take out a cash advance or a payday loan, you will need to repay it within a couple of weeks. Often, due dates are set to fall by your next payday.
  • Repeat Borrowing - It's common for payday loan and cash advance borrowers to take out back-to-back loans.

Here are some differences between cash advances and payday loans:

  • Loan Amounts - Typically, you can't unlock higher loan limits through cash advances without using the service a few times. With a payday loan, however, you can access the state limit from the word "go."
  • Funding Time - The time between requesting a payday loan and receiving your money is often 48 hours or less. Signing up for a cash advance app takes longer. It tends to take several days before you receive your funds unless you pay a fee to expedite the service.
  • Other Features - Some cash advance apps come with features that help you improve your money management or improve your credit score.
  • In-Person Stores - Cash advances aren't usually attached to brick-and-mortar storefronts. They're app-only. Payday loan providers, however, tend to have in-person stores, allowing you to pop in and speak to somebody if you're hit with a financial emergency.


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Which One Is Right For You?

Ultimately, it comes down to personal preference and how long you're willing to wait to receive your money. Cash advances are an option for those who have several days to wait. Payday loans are preferred by those who need cash on the same or the following business day.

Before deciding, we recommend considering whether you need a loan in the first place. If your situation becomes more expensive or worsens if left unpaid, an emergency loan may be your best action plan.

If you decide to get a payday loan from us, you can rest easy knowing you're in highly experienced hands. We've been in the industry for years, providing nothing but top-quality loans for our customers. You only need a driver's license (or a different type of identification), your most recent pay stub, and a blank check to qualify. If you have those, a payday loan is a safe, convenient option.

Get A Payday Loan From Fast Payday Loans, Inc. Now!

Despite their similarities, personal payday advances and payday loans are different. If a payday loan is right for you, complete our easy-to-understand inquiry form and wait for us to give you a call. We'll be in touch soon to guide you through the process.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.