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Can One Cash Advance Help You Get Another?

20 April 2014 No Comment

8 Unfortunate Events That Can Deplete Your Savings AccountWhen it comes to money management tips for students, the main tip that all students should heed is this: Work hard to make sure that you maintain a good credit score. It can impact your financial options for the rest of your life. That being said, it is important to look at the impact that taking out even small loans can have on your ability to get similar loans in the future.

Have you already gone out and picked up a cash advance sometime in the last few years, and did you pay it back on time? Are you now wondering if what you did with that advance is going to help you get another one? In some ways, this is like looking at a good track record for any type of loan. If you get two car loans and pay them off in a timely fashion, the dealer is going to be very likely to give you a third car loan as long as your financial situation still looks good. Based on what you have done in the past, he is going to trust you.

To some degree, this is also true with cash advances. The lenders are always trying to minimize risk. They want to loan out money to people who are actually going to return it to them. This makes their jobs easier and ensures that they do not have to go through expensive court cases and claims processes. It is ideal for lenders, and they are going to like working with you if your track record shows that you are this type of borrower. Your history of taking out advances and then paying them off is going to help you out.

However, it is also worth noting that most cash advance lenders do not look at your credit history. Since the loans are small, they are not as worried about what you did or did not do in the past. They are far more intrigued by your current income levels. They know that your prior struggles, if you did not pay off some loans when you were unemployed, are not going to mean anything if you now have a job. Therefore, they may not even check your history, so your positive borrowing habits from the past might not help you.

However, you should not worry about this too much. If you have a good track record, it certainly will not hurt you. It is either going to help or it is going to be ignored. Either way, you have a good chance of getting the loan that you are after. It all depends on the lender that you choose and the way that they set up all of their policies for screening and approving potential borrowers.

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