The importance of cash advance cannot be lost on any of us. We all know how essential it can be at certain times in our lives. A cash advance is something that can help you out financially when you are in trouble. Once a while we are confronted by financial emergencies; those scenarios that you did not plan for but is then presented before you. For example, you may be making enough money to cover for your living expense and utility bills, but what about if your car fails to start one morning? At this point, a cash advance will certainly be of importance.

Despite how important a cash advance is, in Alabama it is actually not open to just everyone. There are certain requirements that must be met to make you eligible for a cash advance in Alabama either from an online financial agency or an offline agency.

Requirements for cash advance in Alabama

Basically, there are four major things that you must possess or fulfill to make you eligible for a cash advance in Alabama. It is worthy of mention that every Alabama loans online or offline lending agency that is willing to grant a cash advance will have its specific and distinct requirement. However, the four things that are going to be mentioned in this article are the basics that most places need in order to grant cash advance in Alabama.

1. Specific Age:

All financial agencies will require that you be of a particular age before you are considered for a cash advance, for some it is 18 while for others it is 21. It all depends.

2. Employment:

The next criteria for accessing a cash advance in Alabama is a job. You certainly must be gainfully employed before anyone considers you worthy for a cash advance. You must have a verifiable means of income. When you think about it, it makes sense. No one would be willing to lend you money if you don’t have any means to pay back. A lot of lending houses and Alabama loans online agency will wish to confirm that you really are gainfully employed by calling your place of work or requesting that you show them some proof, like an identification card.

3. Monthly income:

This next point is something most people are not aware of. In order to be eligible for an Alabama loan online, you must make a certain minimum of money every month. Some Alabama loans online lending houses will require that you make as much as $1000 as gross income monthly. This means you have to make $1000 before taxes. And yet there are places that would require you to make even more money than that. But majorly it would depend on the amount of money that you are requesting for or that the lending house is willing to offer. When you also think about this it also makes sense. No one would be willing to give you a cash advance in Alabama if you are not making enough money to pay it back.

4. Bank account:

The last most fundamental requirement for a cash advance in Alabama is a bank account. Of course, this is one thing that you must have regardless of where you are getting your advance from. It is also important that the account is of good standing. If you are getting an advance from an Alabama loan online agency then your account must be able to get direct credit. This way, your cash can be transferred directly into your bank account. After all, the less money that has to pass around the better for your pocket and your needs.

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How to minimize the cost of a cash advance

When cash advances are used occasionally and with care, they are usually the best of our bad choices. Although accessing Alabama loans online is one of the most expensive ways to use a credit card, but in situations where you are really in need of emergency short term cash, there are ways by which you can minimize the cost and make it relatively affordable.

Alabama, just like many other states, has the bank bill-pay services. This allows you to pay off your debts as soon as your income arrives. That is before other costs start to rush in.

The cost of cash advance can rise pretty quickly. The APR for an average cash advance is close to 25 percent, which will way beyond the rate for purchases. The fee associated with it is usually $5 to $10. And compared to credit card purchases, there is no grace period when it comes to cash advances. This means that daily interest charges will begin to pile up immediately.

There are two key ways by which you can keep cash advance cheap and avoid paying through your nose;

1. Pay it off fast:

When you are taking a cash advance think of days and not weeks, and certainly, do not consider months. A cash advance of $1000 at 25% APR will accrue interest of 70 cents every day. The idea to keep the interest low is by paying the advance off within a few days or weeks. That way, the interest won’t add up so much.

2. Keep it small:

When accessing an advance from a card you would have to pay a fee based on a percentage of the advance. The most common fee is five percent, which would be a minimum of $5 or $10. This translate to mean that at 5 percent the most you can get is $100. Anything more than this will be going over the $5 minimum fee. Similarly, with a minimum fee of $10, $200 is the most you can borrow.