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Four Cash Advance Pitfalls You Won’t Find With Klover

We can’t always predict what will happen in life. Whether it’s medical emergencies, job losses or property damages, unpredictable obstacles are inevitable and the financial consequences can be tricky. When the unexpected happens, a little financial support can go a long way, which makes cash advances very appealing. 

Cash advances provide quick access to money without needing to apply for a formal loan. Whether you're dealing with an unexpected hurdle or counting down the days until your next paycheck, getting an advance can be an efficient way to receive extra cash immediately.

When looking for a cash advance, considering one that has zero interest rates or fees, like Klover could be your best option. By linking your bank account and verifying your paycheck, Klover immediately provides you with access to a free cash advance in exchange for your unique data. 

Unlike Klover, the associated costs of most cash advances aren’t always clear. Here are four things to look out for: 

  1. High interest rates: Interest rates, the amount charged on top of the principal by a lender, are typically higher for cash advances. For most credit cards, cash advance interest rates range from 17.99 percent to 29.99 percent annual percentage rate (APR), a steep rate that can sneak up on you if you’re unprepared. 
  2. Fees: On top of high interest rates, there are also often costly up-front fees, which typically range from 3 percent to 8 percent. For example, if you take out a $200 cash advance, an additional fee of $6 to $10 will be added to your account balance. 
  3. No grace period: A grace period is the time between the end of a credit card's billing cycle and when the next payment is due. When it comes to cash advances, most credit cards do not offer this grace period, which means you will begin paying interest from the day you take out the advance — there is no delay in getting charged. 
  4. Hidden costs: On top of high interest rates and added fees, there can be other costs to be aware of. For instance, banks and ATMs may charge a separate fee on top of the credit card company's fees. Additionally, if you are more than 60 days late on a payment, your provider could apply a penalty APR fee. 

Get a Free Cash Advance with Klover 

Without proper due diligence, the high interest rates and pricey fees that come with certain cash advances can take you by surprise and impact your financial standing. To avoid paying an arm and a leg, be sure to consider alternatives to traditional cash advances, like Klover. Not only do you get to take control of your own data, but you also get some free money along with it. 

Josh Lamb
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