The term cash advance is almost obsolete today, because payment transactions in credit matters are almost exclusively cashless, i.e. by means of transfers or direct debits. However, cash payment of loan amounts is possible depending on the provider.
What is a cash advance?
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As the name suggests, in the classic sense it is a loan that is paid out in cash. Anyone applying for a loan from a branch bank or an online subsidiary bank of major banks with a branch system can have the loan amount paid out in cash at the counter. In addition, some direct banks, which are grouped together in banking associations, also offer cash payment at counters at partner banks. In addition, it is also possible to have the money withdrawn at service stations from money transfer service providers. Western Union is a well-known company for money transfer services.
Cash credit as an instant loan
In the online age, cash credit is synonymous with instant credit, also known as instant or express credit, which is characterized by a quick loan approval and rapid payment. Many direct and online banks advertise their instant loans as a cash advance because this term is associated with quick processing.
Conditions of the cash credit
A cash loan is usually an installment loan with a fixed interest rate and fixed terms. The conditions can, however, differ from provider to provider, which makes it necessary for the interested party to make a comparison in order to get an overview that makes the selection easier.
It should be noted that cash-dependent cash advances make a comparison difficult, since the offers only mention interest margins. The actual interest for the customer is determined based on the credit rating. Therefore, the lowest interest rates are only available with the best credit rating. Fixed-rate loans with a uniform interest rate for all offer better comparability and are sometimes cheaper than credit-dependent loans. A good cash loan offers the borrower flexible special conditions such as installment breaks and special repayments.